Commonwealth Bank of Australia (CBA) has announced all regulatory approvals have been received for the sale of a 55 per cent interest in Colonial First State (CFS) to KKR.
The transaction is expected to be completed on 1 December 2021.
CBA first announced the CFS divestment to KKR for $1.7 billion last May but faced backlash from the unions with the ACTU arguing it would not be in the best interest of members for CFS to be majority owned by a foreign private equity firm.
The completion of the transaction is expected to result in a pro forma uplift to the Group’s CET1 ratio by 30 to 40 basis points.
Earlier this month, the big four banks confirmed NPAT of $2.2 billion for the quarter in an unaudited trading update, while also noting increases to household deposits (up 12 per cent to $20.4 billion), home lending (up 7.6 per cent to $10.1 billion) and business lending (up 13 per cent to $3.1 billion).
CBA is currently pursuing the divestment of CommInsure General Insurance to be completed in the second half of calendar year 2022, pending regulatory approval.
