🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

UPDATE 1-Australia's Macquarie Group on trading halt amid acquisition rumours

Published 08/10/2015, 11:07 am
Updated 08/10/2015, 11:08 am
© Reuters.  UPDATE 1-Australia's Macquarie Group on trading halt amid acquisition rumours
AXJO
-
DBKGn
-
MQG
-
ANZ
-
MS
-

* Macquarie says to announce "proposed transaction"

* Macquarie to offer $1.1 bln for ANZ car finance unit - reports

* Competition regulator cleared proposed deal last month (Adds ANZ comment, analyst comment, shares)

SYDNEY, Oct 8 (Reuters) - Macquarie Group 's MQG.AX shares were placed on a trading halt on Thursday amid market rumours Australia's top investment bank will buy ANZ Banking Group's ANZ.AX vehicle finance unit in a deal worth A$1.5 billion ($1.08 billion).

Macquarie told the stock exchange on Thursday it expects to make an announcement on "a proposed transaction" before the market opens on Monday. An ANZ spokesman declined to comment.

Macquarie is also expected to launch a A$400 million institutional placement offer to support the purchase, The Australian newspaper reported on Thursday.

ANZ, Australia's No. 4 lender by assets, put the business on the block earlier this year to cut its capital requirements in line with tough new rules. urn:newsml:reuters.com:*:nL4N0XV17O

Last month, Australia's competition watchdog approved Macquarie's proposed bid for Esanda, saying the acquisition would not substantially lessen competition in the car finance market. urn:newsml:reuters.com:*:nWNBS01D0W

The deal will boost Macquarie's EPS at a price below A$1.5 billion, Morgan Stanley (NYSE:MS) said in a research note to clients, adding it will need to raise between A$0.6-A$1.1 billion to fund the acquisition.

Macquarie shares have been one of the rare bright spots on the index this year, surging more than 33 percent to Wednesday's close compared with a near 4 percent drop in the benchmark index .AXJO .

The four major banks have lost 5-12.5 percent this year with ANZ being the worst performer.

Deutsche Bank DBKGn.DE is advising ANZ on the sale. ($1 = 1.3887 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.