ANZ has pulled out of talks to launch a proposed $4 billion takeover of business accounting software company MYOB, amidst ACCC concerns that this will give the bank an unfair advantage over other lenders.
“ANZ today confirmed that it has withdrawn from discussions with [KKR] about a potential acquisition of MYOB,” the bank said in a statement lodged with the ASX.
ANZ has, instead, announced plans to purchase Suncorp Bank for $4.9 billion.
CLSA equities analyst Ed Henning was among the many advisors that felt the MYOB takeover was a bad move for the banking giant.
“The banking sector as a whole is not great at technology, generally overspending on technology projects,” Henning told The Australian.
“We fear that this acquisition could represent just another avenue for increased costs, if mismanaged.
“While MYOB may have improved under private equity ownership, there is a question on the investment made and capex required going forward.
“We are about to head into an economic downturn; is this the right time to be buying an SME software business out of private equity’s hands?”