SYDNEY, Feb 20 Reuters ANZ Group39;s A4.9 billion 3.2 billion buyout of Suncorp39;s banking business was cleared by the Australian Competition Tribunal on Tuesday, meaning the bank can press on with the takeover of its significant rival.

The ruling came in response to an appeal by ANZ and Suncorp of a decision by the Australian Competition and Consumer Commission ACCC that blocked the deal in August on the grounds it would worsen competition in Australia39;s banking sector.

On Tuesday, the Australian Competition Tribunal39;s deputy president, Justice John Halley, told the Federal Court in Sydney there were sufficient net public benefits to allow the deal to go ahead.

He said the proposed deal was unlikely to substantially lessen competition in Australia39;s home lending market.

ANZ shares fell 1.8 in early trade, while Suncorp stock rose 6. The SPASX200 was down 0.32.

The takeover still requires approval by Australian Treasurer Jim Chalmers and an official signoff from the government of Queensland, where Suncorp is based.

If the deal goes ahead, Melbournebased ANZ, which has trailed its larger rivals in home lending, will be able to grow its loan book at a time when banks are struggling to attract new borrowers after a string of interest rate rises.

This is a significant milestone and an important step forward in the process, however we still have further conditions to meet, ANZ Chief Executive Shayne Elliott said in a statement. We remain committed to completing…