Westpac Sells Auto Finance Loans to Resimac

(Reuters) – Westpac Banking (NYSE:WBK) Corp announced on Thursday that it would sell its auto finance loans book to non-bank lender Resimac Group for an estimated value of A$1.4 billion ($963.62 million) to A$1.6 billion at completion.

As Australia’s second-largest mortgage lender by loans, Westpac had previously sold part of its auto finance business to U.S. private equity firm Cerberus Capital Management in 2021, as part of its strategy to concentrate on core banking operations.

Resimac stated that the transaction aligns with its strategic growth objectives for its asset finance division, following several business and portfolio acquisitions in recent years.

The deal is anticipated to be finalized by the first half of 2025.

(Exchange rate: $1 = 1.4529 Australian dollars)