ANZ could be involved in a bidding war with banking rivals HSBC and Standard Chartered to purchase Royal Bank of Scotland’s (RBS) Asian unit, according to Platypus Asset Management portfolio manager Prasad Patkar.
“If they’re competing against HSBC and Standard Chartered, then they’re competing against people who have a very serious franchise in Asia and who are likely to get the most synergistic benefits from a successful acquisition of RBS Asia,” Patkar said.
“So if ANZ have to beat them in the bid in a competitive tender effectively, then they’re likely to have to open up the cheque-book and pay over the top.”
Patkar expects ANZ would have no problem raising money for the deal. He expects RBS Asia may cost $2 billion and that ANZ would raise $2.5 billion to have an extra buffer.
“It all depends on how serious HSBC and Standard Chartered are to get RBS Asia,” Patkar said.
“ANZ’s track record in Asia prior to chief executive Mike Smith hasn’t been the best. But he has incredible experience in the region and other emerging markets, so if anybody can make this acquisition work, it’s probably him.”
ANZ confirmed it has been invited by the RBS Group to participate in the sale process for RBS Asia.
London-based HSBC and Standard Chartered have been widely reported to be the other bidders.
