SYDNEY / TOKYO (Reuters) – Shinsei Bank Ltd (8303.T) said it would buy New Zealand’s top non-bank financial provider, UDC Finance Ltd, for $ 480 million in its largest overseas acquisition to date and mark the latest asset purchase by a Japanese company that wants to move beyond the low-growth domestic market.
FILE PHOTOS: The Shinsei Bank logo is pictured in a bank lobby in Tokyo October 22, 2010. REUTERS / Yuriko Nakao / Photo File
The planned sale also reduces the owners of Australia and New Zealand Banking Group Ltd (ANZ.AX) of assets that have been tried several times, part of a broad push by the Australian banking sector to focus on core services such as mortgages and to limit regulatory issues.
The price tag of NZ $ 762 million is higher than $ NZ660 million which New Zealand media said the Chinese HNA Group had agreed to pay before the deal was blocked by New Zealand regulators in 2017.
Shinsei said small-scale finance is a focus area and UDC, which sells car and machine financial products, is similar to some of its domestic financial units.
“Through the acquisition of this stock, and by utilizing its expertise in small-scale financial business, Shinsei Bank envisions further growth of UDC in New Zealand where GDP growth rates are relatively high among developed countries,” he said in a statement.
The value of this agreement reached the peak of Shinsei’s purchase of around 40 billion yen ($ 370 million) at Taiwan’s bank Jih Sun Financial in 2006.
Japanese companies are interested in utilizing the offshore market for growth because of thin margins and an aging population at home.
Last year, the Mitsubishi UFJ Financial Group (8306.T) buy an asset management business from Australia’s largest lender, Commonwealth Bank of Australia (CBA.AX), for $ 2.9 billion. In 2015, Japan Post Holdings Co. (6178.T) bought Australian logistics company Toll Holdings for A $ 6.5 billion.
($ 1 = 1.5911 New Zealand dollars)
($ 1 = 1.4728 Australian dollars)
($ 1 = 107.7 thousand yen)
Reporting by Byron Kaye in Sydney and Takashi Umekawa in Tokyo; Additional reporting by Shreya Mariam Job in Bengaluru; Editing by Edwina Gibbs
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