ANZ to study KEB for takeover bid

Analysts believe KEB shares to improve as ANZ becomes keen on carrying over the acquisition.

The Australia and New Zealand Banking Group is sending a team of inspectors to the Korea Exchange Bank as early as next week, proceeding with its bid to take over Korea’s fifth-largest lender.

Industry sources confirmed Tuesday that the ANZ will analyze the Korean lender headquartered in Seoul, which would be the first on-site evaluation of the company up for sale since 2006.

Analysts are making rosy forecasts about KEB shares and the pick up of local M&A deals with the news, as the sale would shake up the landscape of Korea’s banking sector.

Chief executive of the Australian bank said KEB fits into its growth strategy Friday, after being lukewarm about the deal for years.

“Korea is one of the leading-value added manufacturing and export-driven economies in Asia, it has rapidly growing trade ties to the region ... and it is now Australia’s third-largest trading partner. This opportunity specifically leverages Korea’s connectivity with the rest of Asia and KEB‘s leading position in foreign exchange and in trade finance,” ANZ chief Mike Smith said as he announced the bank’s third quarter results.

View the full story in Korea Herald.