Westpac to maintain Pacific presence, cancels sale of PNG, Fiji banks
Westpac will maintain a presence in the South Pacific after the federal government indicated it wants to see Australian companies playing a role in the region.
The bank told the ASX on Wednesday it will retain ownership of Westpac Bank PNG and Westpac Fiji and increase investment in the subsidiaries. This comes two years after a $420 million sale of Westpac’s Papua New Guinea bank to Kina Securities was knocked back by the competition regulator in the island nation on the basis it would “limit national economic progress”.
Since the rejection, Westpac has considered alternative buyers for the banks, including French bank BRED-Banque Populaire and PNG institutions NasFund and Credit Corp, which had made earlier bids for the operation during a sales process that kicked off in 2020. More recently, the Fiji National Provident Fund has been in negotiations to buy the banks.
Westpac will retail its bank in PNG amid pressure from the federal government. Gevokila Alfred
However, over the past year, Westpac sources said it had received messages from Canberra that it would be desirable to maintain its operations in the Pacific, as China’s interests and influence in the region expands.
It is understood the government had engaged extensively with Westpac from chief executive Peter King down.
Pacific Minister Pat Conroy said: “The Australian government is really happy about the decision and it demonstrates the Australian corporate sector’s commitment to the Pacific”.
China struck a security agreement with the Solomon Islands last year in a wake-up call to Australia and the United States. The Biden administration has expanded American civilian support for the Pacific to counterbalance China’s influence.
As Westpac was preparing to sell
Read more on afr.com
