New Zealand-based financial services company Heartland Group has entered into a conditional share purchase deal to buy Challenger Bank in Australia for A$36m ($22m).
Challenger Bank is an authorised deposit-taking institution (ADI) that delivers various savings and lending solutions.
Go deeper with GlobalData
It also offers government-guaranteed retail term deposits and home loans, among others.
Following the completion of the deal, which awaits regulatory approvals, Heartland’s existing reverse mortgage and livestock businesses in Australia will be moved to sit under Challenger Bank.
Heartland Group CEO Jeff Greenslade said: “Heartland’s purchase of Challenger Bank signals a major step forward in our Australian expansion strategy.
“A pathway to acquiring an ADI licence would create access to deep and efficient funding pools which allows for growth and the possibility of improved margins.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“This particular acquisition also presents the opportunity to build a high-quality and scalable banking platform in Australia, allowing reach to more customers.”
Heartland Group currently runs Heartland Bank in New Zealand and Heartland Finance in Australia.
Heartland Finance offers livestock finance through StockCo Australia across the country.
Greenslade added: “Once the acquisition has been completed, our intention is to scale Challenger Bank’s digital banking platforms to broaden the reach of our current product offerings, Reverse Mortgages and Livestock Finance, and look to expand into new products.”
