(Adds tribunal decision in first paragraph) ANZ Group's (ANZ)...

(Adds tribunal decision in first paragraph)

ANZ Group's (ANZ) A$4.9 billion ($3.2 billion) buyout of Suncorp's (SUN) banking business has been allowed by the Australian Competition Tribunal on Tuesday, allowing the bank to press on with the takeover of its significant rival.

The finding came after the Australian Competition and Consumer Commission (ACCC) in August blocked the deal that it believed would worsen competition in Australia's banking sector.

The ACT's deputy president, Justice John Halley, told the Federal Court in Sydney on Tuesday there were sufficient "net public benefits" to allow the deal to go ahead.

ANZ, which is Australia's fourth-largest lender by market capitalisation, appealed the ruling along with Suncorp as both parties fought for the deal to stay alive.

The takeover still requires Treasurer Jim Chalmers' approval. Official sign-off from the government of Queensland, where Suncorp is based, is also required.

The ACCC did not immediately reply to a request for comment. The ACCC said last year that allowing the deal to go ahead would "further entrench an oligopoly market structure" where four lenders, including ANZ, have three quarters of the country's A$2 trillion in home loans.

ANZ said when it first announced the Suncorp transaction in 2022 that buying the banking assets would boost its mortgage book by A$47 billion to A$307 billion.

Suncorp, one of Australia's biggest general insurers, has been keen to streamline its business to focus on insurance and reduce the capital requirements from owning a bank.