Motley Fool Australia

Motley Fool Australia

Since 1993, millions of investors have trusted The Motley Fool for simple, down-to-earth investing research.

Westpac, ANZ in the running for Lloyds’ Australian units

According to sources close to the matter, Westpac (ASX: WBC) and ANZ (ASX: ANZ) are amongst the shortlisted bidders for Lloyds Banking Group’s Australian asset-finance and commercial lending units.

It is estimated that Lloyds could reap in excess of AU$1 billion for the sale, which the bank wishes to finalise in order to strengthen its balance sheet and cut costs. Reportedly, the bank is aiming to reduce its international branches from 14 countries to less than 10 by next year.

The acquisition of Lloyds’ assets would provide the successful bidder with growth prospects in a market with limited growth opportunities. Furthermore, the bank’s assets are appealing as they are amongst the last sizable domestic acquisitions that would not draw attention from the Australian Competition and Consumer Commission.

Last week, The Australian Financial Review revealed that Commonwealth Bank (ASX: CBA) had turned its back on the business. Whilst other banks are in the running to take on Lloyds’ assets, it seems likely that it would be Westpac or ANZ due to their ability to fund the portfolios. It has been speculated that National Australia Bank (ASX: NAB) is also keen on the acquisition.

Are you interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

Hot off the presses! This sexy tech stock is our #1 pick for 2015…

Every year, The Motley Fool’s top analysts hand-pick one company as their ‘best bet’ for big returns in 2015 and beyond… And you can be among the first to discover their brand-new 2015 pick!

Discover this sexy yet well-run ASX tech company, including the name and code, for FREE right now. Click here for your copy of "The Motley Fool’s Top Stock for 2015".

See all posts by Ryan Newman
The Motley Fool