ANZ Banking Group Ltd
(ASX:ANZ) says it could spend over $5 billion on strategic stakes in two Asian lenders it is running the numbers over.
After spending $660 million in August on Royal Bank of Scotland’s businesses in Asia, The Australian newspaper reports that the bank is now considering two multi-billion dollar deals.
It has emerged as the clear frontrunner to buy a $1.4 billion, 46% stake in Panin Bank from the Gunawan family and is also considering paying over $4 billion for a majority holding in Korea Exchange Bank.
The bank has not ruled out the possibility of going ahead with both deals as it ramps up a strategy to increase Asia’s contribution to group profit from an existing 12 to 20%.
It hopes to achieve this through organic expansion, as well as acquisitions.
The bank’s Asia-Pacific, Europe and America chief executive, Alex Thursby, says Indonesia is one of ANZ’s most important markets and intends to continue to invest in it aggressively.
The bank has also confirmed that it is not considering selling its 39.5% interest in Indonesia’s PT Bank Panin, despite reports last week.
For the 12 months to September 30, 2009, ANZ Bank reported a profit of $2.943 billion.
