NZ watchdog sinks ANZ plans to sell UDC to Chinese
NEW Zealand regulators have scuttled plans by ANZ to sell a business across the Tasman to a Chinese company.
In a setback for the Australian bank, New Zealand’s Overseas Investment Office has knocked back an application by China’s HNA Group to buy UDC Finance.
ANZ had previously struck a deal to sell the vehicle finance company to HNA for $NZ660 million ($626 million).
The Overseas Investment Office — the equivalent of Australia’s Foreign Investment Review Board — rejected the deal due to uncertainty surrounding the ownership of the Chinese logistics company.
It said it could not determine who owned and controlled HNA and consequently it failed the legislative test.
The Chinese conglomerate, which owns a 19 per cent stake in airline Virgin Australia, had agreed to buy UDC nearly a year ago but has been under increase scrutiny after a debtfuelled $US40 billion ($56 billion) global buying spree.
ANZ New Zealand chief David Hisco said the sale would not proceed unless HNA could have the decision reversed.
“We don’t know if HNA will attempt to overturn the decision,” Mr Hisco said in a statement.
“If the sale does not proceed, we’ll assess our strategic options regarding the future of UDC.” Mr Hisco said there was no urgency for a decision about the NZ business, given the strength of ANZ’s capital position following the sale of its life insurance arm, and that the company would continue to operate as usual.
“UDC’s focus remains on its core business of financing vehicles and equipment for people and companies across New Zealand,” he said.
“So, it will be business as usual for our staff and customers.”
ANZ struck a $2.85 billion deal earlier this month to sell its life insurance business to Swiss financial services titan Zurich.
The bank yesterday said the decision would have no impact on the $1.5 billion on-market buy back of shares it announced on Monday.
That announcement followed the completion of the sale of its stake in Shanghai Rural Commercial Bank.