Macquarie to purchase ANZ's dealer finance unit
Macquarie Group is to purchase ANZ's Esanda car dealer finance business for a total price of AUD 8.2bn ($5.9bn), as well as looking to raise AUD 400m ($288m) by selling shares to institutions to help fund the deal. Macquarie says it needs AUD 800m ($574m) in initial capital for the purchase and also plans to offer stock to shareholders. This deal will give Macquarie AUD 7.8bn ($5.6bn) in additional loans, taking its total auto finance portfolio to around AUD $17bn ($11bn), and adding 10 Australian cents per share to earnings in the first full year after the acquisition. It is also in line with Macquarie's CEO, Nicholas Moore's, strategy of focusing on businesses that shelter the firm from the boom-and-bust cycle of investment banking. ANZ is looking to raise capital due to regulatory changes, with this deal expecting to boost the bank's common equity tier 1 capital ratio by about 20 basis points.  

ANZ today announced it has entered into an agreement to sell its Esanda Dealer Finance portfolio to Macquarie Group Limited.

The portfolio includes net lending assets of $7.8 billion comprising retail point-of-sale auto finance of $6.2 billion, and wholesale bailment facilities and other Esanda branded finance offered to motor vehicle dealers of $1.6 billion (as at 31 August 2015). The total purchase price for the portfolio is $8.23 billion.

ANZ CEO Australia Mark Whelan said: “The sale of the Esanda Dealer Finance portfolio reflects a continued focus by ANZ on core businesses and further strengthens our capital position. “Macquarie’s expertise, scale and reach mean they are ideally placed to continue providing high levels of support to dealer and auto finance customers,” Mr Whelan said. Following completion, ANZ’s Common Equity Tier 1 ratio is expected to increase by ~20 basis points.

The sale does not include ANZ commercial broker, commercial asset finance or direct to consumer asset finance businesses.

The sale of the retail portfolio is expected to complete by 31 October 2015

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