(9 December 2009 – Australia) ANZ has announced an agreement to acquire the Landmark Financial Services loan and deposit books of the Australian Wheat Board (AWB).Landmark Financial Services is a division of AWB’s rural service business and provides financial services to approximately 10,000 agribusiness customers.
As part of the transaction, Landmark will enter into an exclusive distribution and referral agreement for ANZ banking products to be offered to Landmark’s 100,000 customers through its national network.
The loan book to be acquired has an approximate value of A$2.4 billion and the deposit book is valued at approximately A$300 million, with both being acquired at net book value.
Mike Smith, chief executive officer, ANZ, said that this transaction is consistent with ANZ’s strategy to become a super regional bank.
The Australian agricultural sector is well placed to benefit from growth in global population and food demand over the next ten years, particularly in Asia, Mr Smith said.
Mr Smith also added that the acquisition is intended to help the bank become a leader in agribusiness financial services in Australasia.
The group is also taking its expertise into Asia; with the recent opening of the new ANZ rural bank in Liangping in western China being an example of this, Mr Smith highlighted.
Following the completion of the transaction, ANZ’s pro-forma 30 September Tier One capital ratio will sit at 9.9 percent.