Westpac favourite to buy Lloyds

International and local banks have been frantically putting together financing packages over the weekend for three sets of bidders seeking to buy Lloyds Banking Group Plc’s Australian business, which may be worth about $10 billion.

Westpac Banking Corp (WBC) is the clear front-runner to buy the business that consists of a portfolio of largely performing loans and a car leasing business, worth about $6.5 billion, which would fit in nicely with Westpac’s own car leasing unit, the clear No. 1 in the Australian market.

ANZ (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Citigroup Inc, JPMorgan Chase & Co, Credit Suisse Group AG, Deutsche Bank AG, Sumitomo Mitsui Banking Corp and Bank of Tokyo-Mitsubishi UFJ Ltd have approached bidders offering finance.

Westpac’s rivals include Pepper Group, which has formed a consortium with Challenger (CGF), General Electric Capital Corp and Bank of America Merrill Lynch.

Macquarie Group (MQG) will also bid.