ANZ share price rises as MYOB acquisition rumours swirl

Is ANZ about to make a major acquisition?

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Key points
  • ANZ shares are outperforming on Thursday morning
  • This appears to have been driven by speculation the bank could be about to make a major acquisition
  • ANZ is rumoured to be interested in acquiring accounting platform provider MYOB

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is pushing higher this morning.

At the time of writing, the banking giant's shares are up 1.8% to $22.23.

This compares favourably to the rest of the big four banks and the ASX 200 index with its 0.6% gain.

Black and white arrow joining together to make a bigger arrow symbolising mergers and acquisitions.

Image source: Getty Images

What is driving the ANZ share price higher?

The catalyst for the rise in the ANZ share price today could be speculation that it is on the verge of making a major acquisition.

According to the AFR, the bank is running the rule over accounting software company MYOB, which is used by over 1 million small businesses in Australia.

While there has been speculation floating around for a little while that ANZ could be interested in snapping up MYOB, the rumours have grown louder this week.

This follows reports that ANZ has brought in Macquarie Capital and UBS for advice. The two investment banks are understood to be working on MYOB's books and modelling what impact it could have on the bank's customer base.

But a deal for MYOB would not be cheap. Private equity firm KKR bought the accounting software company for $2.4 billion in 2019.

Why MYOB?

ANZ is understood to see the acquisition of MYOB as a way to create a one-stop shop for small business banking. By adding the accounting platform to its offering, ANZ could potentially allow customers to manage their financials and accounting in one place.

This could potentially have ramifications for Xero Limited (ASX: XRO), which has 1.34 million subscribers in Australia and 512,000 subscribers in New Zealand. But as things stand, ANZ has not commented on the matter and this potential transaction remains speculation.

Time will tell if a deal is made and a shake-up of the small business landscape happens.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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