ANZ Withdraws Bid for Lloyds Australian Units -Sources
By Gillian Tan
SYDNEY--ANZ Banking Group Ltd. (ANZ.AU) has dropped its bid for the Australian arm of U.K. lender Lloyds Banking Group PLC (LLOY.LN), people familiar with the matter said Wednesday.
ANZ--Australia's third-largest bank by market value--was among four parties shortlisted to buy Lloyds's asset finance and commercial lending units but withdrew on concerns about its ability to integrate the units with its Esanda financing arm, one of the people said.
The remaining bidders for Lloyds International Pty Ltd. are Macquarie Group Ltd. (MQG.AU), Westpac Banking Corp. (WBC.AU) and a consortium including Bank of America Merrill Lynch (BAC) and non-bank lender Pepper Australia Pty Ltd., the person said.
Final bids for the business are due Sept. 30, one of the people said. Initial bids, received in August, valued Lloyds's commercial-lending unit BOS International and its asset-finance unit, Capital Finance, at more than 1 billion Australian dollars (US$937 million).
The Wall Street Journal reported in July that the units, which included A$9.4 billion in assets under management, were for sale. That figure has since fallen by A$371 million, after Bain Capital LLC's credit affiliate Sankaty Advisors LLC acquired a portfolio of loans from the U.K. lender last month.
The deal comes as the U.K. government begins returning its bailed-out banks to private hands, reducing its stake in Lloyds to 33% earlier this month by selling a 6% stake that generated Â£3.21 billion (US$5.1 billion) for the U.K. Treasury.
-Write to Gillian Tan at firstname.lastname@example.org
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