Westpac Banking Corp announced on Thursday its intention to sell its auto finance loans book to non-bank lender Resimac Group for an estimated value between A$1.4 billion ($963.62 million) and A$1.6 billion upon completion.
The move marks a significant step as Westpac, Australia’s second-largest mortgage lender by loans, continues to streamline its focus on core banking operations.
In 2021, the bank partially divested its auto finance business to U.S. private equity firm Cerberus Capital Management.
In a statement, Resimac noted that: "The transaction supports the strategic growth objectives of Resimac’s asset finance division and follows a number of business and portfolio acquisitions in recent years."
The completion of the deal is anticipated by the first half of 2025.
