Westpac has confirmed it will buy Lloyds Banking Group’s Australian assets for $1.45 billion.
The bank says the assets will make $100 million in earnings by financial year 2015.
After three consecutive years of losses in Australia, Westpac has bought Lloyd’s book of loans which includes Capital Finance Australia and BOS International.
Under the deal Westpac will gain a $3.9 billion motor vehicle finance book, a $2.9 billion equipment finance book and a corporate loan portfolio of $1.6 billion.
“Our strong capital position has allowed us to expand our business without having to raise additional equity,” said Kelly in a statement to the ASX.
It is the biggest move made by the bank since an $18.5 billion takeover of St George in 2008.
AFR has more.
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