Australian bank to buy some RBS businesses in Asia

SYDNEY: Australia and New Zealand Banking Group Ltd. said on Tuesday it had agreed to buy some Asian businesses of the Royal Bank of Scotland in a $550 million deal that advances the lender's regional expansion strategy.

The acquisition will give one of Australia's largest banks control over 54 branches around the region, $3.2 billion in loans and $7.1 billion in deposits serving about two million clients.

ANZ Chief Executive Mike Smith said the deal is a ``further stepping stone'' in the bank's Asian strategy.

RBS was bailed out by the British government amid the financial crisis and is selling assets to repair its battered balance sheet.

Melbourne-based ANZ will buy RBS's retail, wealth management and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, as well as RBS's institutional banking businesses in Taiwan, the Philippines and Vietnam.

The businesses are expected to add to earnings per share within two years of completing their takeover, the bank said in a statement. The deal is subject to regulatory approval in each market and ANZ expects to complete the takeovers progressively from late 2009.

ANZ operates in 32 countries, and has the largest presence in the Asia-Pacific among Australia's ``big four'' banks.

``This is a solid outcome for ANZ that consolidates its growth strategy into Asia and gives added credence to its ambitions of becoming a regional powerhouse,'' IG Markets research analyst Ben Potter said in a note to clients.

``It's certainly a positive that ANZ have been able to cherry pick the business units of best fit without the need to divest any unwanted assets.''