ANZ ends Chinese sale deal

ANZ has scrapped plans to sell a New Zealand-focused asset finance business to a Chinese corporation for $600 million.

The move to abandon the deal to sell car loans, asset finance and investments business UDC Finance to China’s HNA Group, tabled early last year, follows New Zealand’s foreign investment regulator raising concerns about HNA’s opaque corporate structure.

The Overseas Investment Office, the equivalent to Australia’s Foreign Investment Review Board, said in December it would block the deal after being unable to work out who would control the asset.

HNA Group was founded 25 years ago as a Chinese regional airline, but an aggressive buying spree has transformed it into a $200 billion giant with major holdings in corporate blue chips including Virgin Airlines, Deutsche Bank and the Hilton hotel chain.

It has come under scrutiny from regulators worldwide for not properly disclosing its stakes in many businesses.

HNA had the option of appealing the regulator’s decision, but ANZ will use a clause in its sales agreement that lets it walk from the deal.

“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,” ANZ New Zealand chief David Hisco said.

Shares in ANZ yesterday dipped 0.7 per cent to $28.52.