Daily News: October 14, 2013

Westpac Acquires $8.4 Billion of Lloyds Assets

Westpac announced it has entered an agreement to acquire Lloyds Banking Group’s Australian asset finance business, CFAL, and its corporate loan portfolio for $1.45 billion. This follows Lloyds’ decision to focus on its UK business.

The acquisition comprises motor vehicle finance book of $3.9 billion and equipment finance book of $2.9 billion and a corporate loan portfolio of $1.6 billion. Westpac said its strong balance sheet ensures the acquisition will be fully funded from internal resources.

The transaction meets Westpac’s disciplined acquisition criteria and is
Westpac Group Chief Executive Officer, Gail Kelly, said the acquisition would deliver benefits to 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. These are strongly performing businesses that we know well and that will expand our reach and capability in target segments,” Kelly said.