Australia's ANZ, Suncorp overcome objection to major merger, Picture: AFP/ Torsten Blackwood

The Australian Competition and Consumer Commission had blocked ANZ's proposed takeover of Suncorp Bank, but the firms managed to overturn the decision on appeal.

ANZ, already one of Australia's big four banks, would significantly boost its position as a mortgage provider through a takeover of Queensland-based Suncorp.

The Australian Competition Tribunal ruled, however, that the move would not significantly harm competition.

The takeover bid, which was announced in July 2022, still requires the endorsement of Treasurer Jim Chalmers, who promised to "carefully and methodically consider" the deal.

Suncorp's shares rose almost six percent during trading in Sydney, while ANZ fell three percent amid reported concerns about the financial impact of the merger.

"This is a significant milestone and an important step forward in the process, however, we still have further conditions to meet," said ANZ chief executive Shayne Elliot.