Australia and New Zealand Banking Group (ANZ) has reached an agreement with AWB, an Australia-based agribusiness, to acquire its division Landmark Financial Services loan and deposit books.
The loan book of approximately $2.4 billion and the deposit book of approximately $300m are being acquired at net book value after appropriate provisions and involves around $160m in capital.
As part of the transaction, Landmark will enter into an exclusive distribution and referral agreement for ANZ banking products to be offered to Landmark’s 100,000 customers through its national network. Landmark staff associated with the business will be offered roles with ANZ. ANZ’s presence extends to 307 regional and rural locations serviced by more than 600 regional commercial and agribusiness staff.
Mike Smith, CEO of ANZ, said: “This transaction is consistent with ANZ’s strategy to become a super regional bank. The Australian agricultural sector is well placed to benefit from growth in global population and food demand over the next ten years, particularly in Asia.”
David Hisco, managing director of commercial banking at ANZ Group, said: “This move highlights ANZ’s commitment to rural and regional Australia. It expands our commercial business in Western Australia, Queensland and New South Wales and in key sectors such as cropping, beef and mixed livestock. The transaction is also a good outcome for Landmark and ANZ agribusiness customers.
“It strengthens our representation across the country, and provides Landmark customers with access to a wider range of products and services, linkages to our Asian network and the security of ANZ.
“The acquisition marks a further step in establishing ANZ as a benchmark for commercial and agribusiness banking in regional and rural Australia, where farmers are forecast to increase export earnings to $32 billion this year and by a further 18 percent over the next four years.”
However, the transaction is expected to be completed early in 2010, subject to necessary regulatory and other approvals.
