Kina and Westpac Banking Corporation have mutually agreed to cease its purchase of Westpac Fiji and Westpac’s 89.91 per cent stake in Westpac Bank PNG – a deal that was hoped to expand Kina’s footprint into more markets.
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 we 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.”