Westpac is about to acquire an $8 billion loan book off Lloyds Banking Group, after Macquarie changed its mind.
The Australian Financial Review is reporting Macquarie has pulled out of the bidding process, and that Westpac will pay around $1.7 billion for the net assets after Lloyd’s decided to go with Gail Kelly’s bank last Thursday.
According to the report Macquarie pulled its offer ahead of the expected announcement. It had been prepared to pay more money than Westpac, but did not want all of the loans, which could be why Lloyds made the decision.
The UK government owns more than 40% of Lloyds, after it required a bailout during the GFC. It has had three consecutive years of losses in Australia.
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