Top Australian investment bank Macquarie Group on Thursday said it will buy ANZ Banking Group's A$7.8 billion ($5.59 billion) vehicle finance portfolio, building on its strategy to cut risk and focus on steadier returns.
Macquarie was paying a premium of A$400 million on the portfolio's net lending assets, taking the total purchase price to A$8.2 billion. It would need initial capital of about A$800 million, half of which would be raised through an institutional share placement, Macquarie said in a statement.
The acquisition marks another step in Macquarie's so far successful strategy of reducing its reliance on risky investment banking and focusing on more reliable revenue streams. The bank's shares, which were placed on a trading halt Thursday pending the announcement, are up 33 percent this year as of Wednesday's close, compared with a near 4 percent drop on the benchmark index.