Westpac Banking Corporation (WCB) has entered into an agreement to acquire Lloyds Banking Group’s Australian asset finance business, CFAL, and its corporate loan portfolio, BOSI, for $1.45 billion.
In a statement to the Australian Securities Exchange, Westpac said the sale comes as Lloyds’ focuses on its United Kingdom business.
Westpac chief executive officer Gail Kelly said the acquisition benefit shareholders and was a good strategic fit with the existing businesses of St.George and Westpac Institutional Bank (WIB).
“This is a value creating, straightforward transaction that makes both commercial and strategic sense," Mrs Kelly said.
"These are strongly performing businesses that we know well and that will expand our reach and capability in target segments.
“Importantly the transaction meets our strict acquisition criteria and shareholders will see a benefit to earnings per share in fiscal 2014.
“Our strong capital position has allowed us to expand our business without having to raise additional equity.”