Banking News

ANZ scraps sale of NZ asset finance business

ANZ scraps sale of NZ asset finance business

(12 January 2018 – New Zealand) ANZ Banking Group has seized plans to sell its Kiwi car loans, asset finance and investments business UDC Finance to China's HNA Group over New Zealand concerns about the conglomerate's ownership structure.

New Zealand's Overseas Investment Office (OIO) said HNA was unable to satisfy its questions as to who would ultimately control the asset, effectively halting the Chinese firm’s NZ$660 million (A$603 million) acquisition of UDC Finance.

ANZ group executive and New Zealand chief executive David Hisco said, “Following the termination of the agreement with HNA, we'll continue to assess our strategic options regarding the future of UDC, although there is no immediate requirement to do anything.”

"It will be business as usual for staff and customers. UDC continues to be a very profitable business with a strong capital position and a growing loan portfolio across a range of industries."

The sale was expected to deliver ANZ an additional 10 basis points of CET1 capital. The bank said its 2018 earnings would be adjusted to reflect the development and the A$1.5 billion buyback would not be affected.

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