Kina Bank has obtained the regulatory approval to acquire the retail, commercial and SME banking businesses of ANZ in Papua New Guinea (PNG).
The deal, first announced last June, is part of ANZ’s plan to simplify business.
At the time of deal announcement, Kina CEO Greg Pawson said: “Completing this acquisition represents a key component of our refreshed five-year strategic plan.
“The strength and capabilities that the acquisition will enable will allow us to better deliver on our purpose of empowering our customers and communities to have financial independence and security.”
“On day one there will be no change to their offering. Over the near future, their offering is expected to be enhanced as Kina continues to execute on its digital strategy,” Pawson added.
The takeover concerns 15 branches, 72 ATMs as well as over 1,800 EFTPOS terminals of ANZ.
Kina expects the transaction to boost its lending market share to 8.8% from 5.8% and its deposit market share to 9.9% from 4.8%.
The deal, expected to be wrapped up in September this year, is expected to be “strongly accretive” to Kina’s earnings.
ANZ has been divesting businesses in several Asian markets recently.
In 2017, ANZ announced the sale of its retail business in Vietnam to Shinhan Bank Vietnam.