ANZ Withdraws Bid For Lloyds' Australian Assets: Reports

(RTTNews) - Australia & New Zealand Banking Group Ltd., known as ANZ, (ANZ.AX, ANZBY, ANZ) has dropped out of its $900 million bid for the Australian assets of UK-based Lloyds Banking Group Plc. (LLOY.L, LYG), media reported Wednesday, citing people familiar with the matter.

ANZ was among four bidders for Lloyds's asset finance and commercial lending units. ANZ withdrew after it concluded that the buy would not add significant clients, and on concerns about its ability to integrate the units with its Esanda financing arm, the reports said.

Westpac Banking Corp., Macquarie Group Ltd. and a consortium including Bank of America Merrill Lynch and non-bank lender Pepper Australia Pty Ltd. are said to be among other bidders for these assets. The assets include a leasing and loan portfolio.

Final bids are due by September 30. Lloyds received initial offers in August that valued the commercial-lending unit BOS International and its asset-finance unit, Capital Finance, at more than A$1 billion or about $937 million.

On Tuesday, Lloyds agreed to sell a portfolio of European commercial real estate loans to Promontoria Holding 76 B.V., and Promontoria Holding 78 B.V., for a cash consideration of 312 million euros. The transaction is part of the company's continued non-core asset reduction strategy.

In Australia, ANZ shares are currently trading at A$31.35, up A$0.36 or 1.18 percent.