Suncorp has accepted a $4.9 billion bid from ANZ to take over its banking business, as the big four bank seeks to accelerate its growth.

The proposal has to receive clearance from the Australian Competition and Consumer Commission, which has to be satisfied it will not substantially lessen competition in the banking sector.

It will also require approval from the Federal Treasurer, Queenslander Jim Chalmers, as well as legislative changes to Queensland's State Financial Institutions and Metway Merger Act 1996.

"We know there will rightly be questions from government and regulators about the competition aspects of this transaction," acknowledged ANZ chief executive Shayne Elliott in a statement.

"As the smallest of the major banks, we believe a stronger ANZ will be able to compete more effectively in Queensland, offering better outcomes for customers."

According to analysis from RateCity using APRA data, the deal would push a combined ANZ plus Suncorp just ahead of NAB (which recently bought Citi's Australian consumer banking business) as the third biggest of the major banks for home lending.

ANZ plus Suncorp would have 15.4 per cent of outstanding home loans ($307 billion), still well short of Westpac's 21.5 per cent ($430 billion) and the Commonwealth Bank's 25.9 per cent ($517 billion).

ANZ talks up Queensland commitment:

Given the bank's focus on the Queensland market, and the politics potentially involved, it is not surprising that ANZ and Suncorp are emphasising a continued commitment to that state if the business changes hands to the Melbourne-based big four bank.

"Once completed we will initially run Suncorp Bank as a separate business retaining the current brand," Mr Elliott told banking analysts during a briefing.

"We've licensed that brand for a minimum of five years, which allows us to consider longer term brand options, whether a full conversion to ANZ or possibly launching a new brand."

In the company's statement on the deal, Mr Elliott committed to maintaining Suncorp's current branch footprint in Queensland for at least three years post completion.

"This is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders," he said.

"Suncorp Bank will continue to be led by current CEO Clive van Horen. For team members, it is business as usual with no planned changes to employment conditions and the acquisition will not result in any net job losses in Queensland for Suncorp Bank for at least three years post completion."

Suncorp Group chief executive Steve Johnston said his company's main reason for selling the bank was to focus on its core insurance business.

""The bank has become an attractive asset, with good momentum, a de-risked book and a strong alignment to the high growth state of Queensland," he told analysts, explaining ANZ's interest in the deal.

However, he also argued that customers would ultimately be better off as part of a bigger bank.

Original Story By | Michael Janda & Peter Ryan