The acquirers of the stake in the deal include China COSCO Shipping and Shanghai Sino-Poland Enterprise Management Development Corporation.
Under the terms of the agreement, the Chinese firms will each acquire 10% of SRCB.
ANZ Deputy Chief Executive Officer Graham Hodges said: “This partnership has been beneficial for both ANZ and for Shanghai Rural Commercial Bank. SRCB is now a strong, successful bank with a prosperous future.
“As we have previously stated, the sale reflects our strategy to simplify our business and improve capital efficiency.”
SRCB, which received a total of AUD568m ($411.3m) from ANZ, contributed AUD259m ($187.5m) to its post-tax profits for the financial year 2016.
ANZ said that its minority investments in China have also helped in providing it with a stronger understanding of the Chinese banking system.
The investment also supported ANZ to expand branch network in China and gain full banking licence in the country in 2010.
Hodges added: “The sale will also allow us to focus our resources on our Institutional Banking business in Asia.
“This includes a significant commitment to China over the past 30 years with 100% ANZ-owned branches in Beijing, Shanghai, Guangzhou, Chongqing, Chengdu, Hangzhou and Qingdao serving our institutional clients.”
The transaction is subject to customary closing conditions and regulatory approvals. It is expected to be completed by mid-2017.
In October last year, ANZ reached an agreement to sell its Retail and Wealth business in Singapore, Hong Kong, China, Taiwan and Indonesia to Singapore’s DBS Bank.
Image: The bidding process by ANZ is expected to attract bids from China, Taiwan and Japan. Photo: courtesy of Australia and New Zealand Banking Group Limited.
