Westpac Banking Corp
(ASX:WBC) has entered into an agreement to acquire Lloyds Banking Group’s Australian asset finance business, CFAL, and its corporate loan portfolio, BOSI, for $1.45 billion.
Westpac says the sale comes as Lloyds’ focuses on its United Kingdom business.
Westpac chief executive officer Gail Kelly said the acquisition will benefit shareholders and was a good strategic fit with the existing businesses of St George and Westpac Institutional Bank.
Ms Kelly says shareholders will see a benefit to earnings per share in fiscal 2014.
The deal is not subject to regulatory approvals and is expected to be completed on December 31.
Westpac delivered a net profit of $3.3 billion in the first half of fiscal 2013.
