CBA snaps up BankWest
(9 October 2008 – Australia) CBA has announced that it will acquire BankWest and the St Andrew's wealth and insurance business for A$2.1 billion.
In addition to the A$2.1 billion (£1.0 billion) sale price, current owner HBOS will receive a return of excess capital in BankWest of approximately A$360 million.
The BankWest brand will be retained and will help strengthen CBA’s competitive position in BankWest’s home market.
The sale follows the parent company HBOS, the fifth largest UK bank, recently announcing that it would be acquired by Lloyds TSB.
HBOS said that selling BankWest and St Andrew's will strengthen HBOS's capital position and reduce its funding obligations during a period of unprecedented volatility in global financial markets.
In order to continue to carry substantial surplus capital due to the current volatile market conditions, CBA will fully fund the purchase price by undertaking a A$2 billion accelerated institutional placement.
Ralph Norris, Commonwealth Bank chief executive officer said that the bank has rarely seen a quality asset such as BankWest become available on such attractive terms.
He added that BankWest provides a significant opportunity to further develop CBA’s business in the fast growing Western Australian market.
HBOS Australia's corporate business, BOS International (Australia) Limited, and its asset finance company, Capital Finance Australia Ltd, will be retained. HBOS's Australian Treasury operation will also remain.
The BankWest brand will be retained and will help strengthen CBA’s competitive position in BankWest’s home market.
The sale follows the parent company HBOS, the fifth largest UK bank, recently announcing that it would be acquired by Lloyds TSB.
HBOS said that selling BankWest and St Andrew's will strengthen HBOS's capital position and reduce its funding obligations during a period of unprecedented volatility in global financial markets.
In order to continue to carry substantial surplus capital due to the current volatile market conditions, CBA will fully fund the purchase price by undertaking a A$2 billion accelerated institutional placement.
Ralph Norris, Commonwealth Bank chief executive officer said that the bank has rarely seen a quality asset such as BankWest become available on such attractive terms.
He added that BankWest provides a significant opportunity to further develop CBA’s business in the fast growing Western Australian market.
HBOS Australia's corporate business, BOS International (Australia) Limited, and its asset finance company, Capital Finance Australia Ltd, will be retained. HBOS's Australian Treasury operation will also remain.
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