Westpac stole the deals show on Wednesday, confirming our report that it had called in the investment bankers and was mulling a spin-off of its chunky New Zealand business.
Although nothing’s decided yet – and big banks such as Westpac always take a while to make up their mind – if it is thinking about an NZ retreat, you can bet Australia’s other banks will also be considering their options.
NZ has been a happy hunting ground for Australia’s banks. The big four account for 85 per cent of the market across the Tasman, but they’ve been unimpressed with recent regulations that require them to hold more capital. That means they have had to either increase interest rates there or accept that the glory days are over.
Macquarie Capital is in Westpac’s corner, and the other big investment banks are sure to check in with their friends at CBA, ANZ and NAB to see what they’re thinking.
The group’s co-founders, Young Rich List-ers Kayla Itsines and Tobi Pearce, are understood to be keen to test buyer appetite after a huge year during which the use of their Sweat fitness and lifestyle app soared.
And finally, we have found a big buyer for SAI Global’s assurance business.
Happy reading,
Sarah Thompson, Anthony Macdonald and Tim Boyd Street Talk Editors
As Jefferies’ investment bankers work to find a buyer for the assurance business, the team at JPMorgan have got a nice little side auction running on their own.
