Can an Aussie bank cut it with the big boys in Asia? ANZ has been growing in the region for several years, but has now become a much larger player after agreeing to buy some of RBS’s Asian businesses for about $US550m.
The firm is snapping up the retail, wealth management and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, as well as RBS’s institutional banking operations in Taiwan, the Philippines and Vietnam.
Is this a once-in-a-generation opportunity for ANZ to really expand outside its small domestic market, or is the bank opening up a can of integration worms as RBS did when it bought ABN AMRO?
How will the enlarged ANZ perform in the competitive, banking-hub markets of Hong Kong and Singapore?
And is the RBS purchase a sign of more expansion on the horizon? “It’s not a transformational acquisition, but it is a stepping stone that complements our existing business,” chief executive Mike Smith told a briefing in Hong Kong.
The cashed-up ANZ has confirmed it has capacity for as many as three other takeovers the size of the RBS deal, although the prospect of a large-scale Asian acquisition is still some time off.
Is Asia the perfect match for ANZ? Let us know below.