Westpac the favourite to snap up Lloyds

Westpac, Macquarie and a group led by Pepper are expected to submit bids for the $10 billion business today.

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 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 Ltd, Commonwealth Bank of Australia Ltd, National Australia Bank Ltd, 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 Ltd, General Electric Capital Corp and Bank of America Merrill Lynch.

Macquarie Group Ltd will also bid.