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Westpac buys struggling RAMS

Westpac buys struggling RAMS

(2 October 2007 – Australia) Westpac has announced that it will buy the brand and distribution business of struggling mortgage business, RAMS, for A$140 million. The acquisition comes as Westpac was seeking to expand its mortgage arm. It will provide a new growth option of Westpac, extending Westpac’s retail footprint by ten percent.

David Morgan, chief executive officer, Westpac, said the acquisition will separate the RAMS franchise distribution business from the funding arm.

He said that this franchise model has proven to be successful and, with this acquisition, it will continue.

He also stated that the purchase creates a sustainable future for franchisees and the RAMS brand. Both of the franchise network and brand will operate separately to existing Westpac channels.

The RAMS franchise distribution business includes the RAMS brand, franchise network, associated mortgage origination and servicing systems and contracts needed to run the distribution business.

However, Westpac is not acquiring the ASX listed RAMS Home Loans Group Ltd or its existing mortgage book.
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