ANZ aborts plan to sell unit to HNA

SYDNEY: Australia and New Zealand Banking Group Ltd (ANZ) has dropped plans to sell its vehicle finance unit to HNA Group after New Zealand blocked the US$460 million (RM1.8 billion) deal last month over concerns about the Chinese conglomerate’s ownership structure.

HNA had agreed to buy UDC Finance, New Zealand’s largest non-bank lender, early last year. But last month, New Zealand’s Overseas Investment Office cited uncertainty over HNA’s ownership structure for the rejection.

The failed bid for UDC Finance adds to recent setbacks that the Chinese conglomerate has faced in its overseas push into the financial sector after spending US$50 billion in debt-fuelled acquisitions.

These include large minority stakes in Deutsche Bank and the United States operations of Old Mutual Asset Management.

The UDC sale was part of the lender’s plans to offload assets to Australia and New Zealand Banking Group Ltd says it will continue to assess its strategic options regarding UDC Finance. meet new capital requirements.

ANZ had warned last month that it would back out of the deal unless HNA managed to get the decision of the New Zealand regulator overturned.

ANZ said yesterday it would continue to assess its strategic options regarding UDC. Reuters