Kina Bank Drops Acquisition of Westpac

Kina Securities and Westpac have mutually agreed to terminate the purchase of Westpac Fiji and Westpac’s 89.91 percent stake in Westpac Bank PNG. This was a deal that was hoped to expand Kina’s footprint into more markets.

The termination to pursue purchase was as a result of the regulator, Independent Consumer and Competition Commission (ICCC) who had rejected Kina Securities’ application to acquire Westpac PNG Ltd.

The decision made by ICCC was following the submission of the authorization application by Kina securities to purchase 89.91% of Westpac PNG shares on the 17th of March 2021.

The regulator had already rejected the acquisition in its draft determination due to the high probability that it will reduce competition in the commercial banking space, and have once more refused Kina securities’ application in its final determination.

Completion of the acquisition was subject to various regulatory approvals and the termination follows last week’s decision by Papua New Guinea’s regulator, Independent Consumer and Competition Commission to deny authorization for Kina’s proposed acquisition of Westpac PNG.

The authority body said it was not satisfied the deal wouldn’t substantially lessen competition, nor benefit the public. The decision came just two months after a preliminary determination, which also came to this conclusion.

Taking into account the costs incurred in the transaction and the expected revenue from the acquisition now not occurring, Kina expects that its full-year 2021 results will now be in line with the Company’s full-year 2020 results.

Commenting on the termination, Kina’s Managing Director and Chief Executive Officer, Greg Pawson said whilst they are disappointed that the acquisition has not proceeded, this in no way changes the Company’s strategy of seeking both organic and inorganic growth in PNG and the Pacific region.

“The outlook of the company remains positive,” says Pawson.

Statement / Exeprenuer Magazine 

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