Papua New Guinea-based Bank South Pacific (BSP) has completed the purchase of Westpac’s operations in Samoa, Tonga and Cook Islands for A$91m.
In January, Westpac announced plans to sell its operations in five Pacific Island nations to BSP for A$125m. The nations included Vanuatu and Solomon Islands, apart from Samoa, Tonga and Cook Islands.
The deal was pending regulatory nod by the Bank of Papua New Guinea and respective regulators in each country.
BSP managing director and CEO Robin Fleming said: "This transaction is a major milestone for a Papua New Guinean Bank. BSP is committed to our customers, our people and the communities we operate in."
However, the proposed sale of Westpac’s Vanuatu business will be delayed due to the impact of Cyclone Pam which devastated Vanuatu one month following the sale announcement.
Westpac has also failed to secure full approval from the Central Bank of Solomon Islands for the sale of its Solomon Islands operations.
BSP and Westpac are currently consulting with the Central Bank of Solomon Islands to receive relevant statutory, regulatory and third party approvals.