ANZ to consider bidding for Korean Exchange stake

Australian lender plans to compete with local counterparts to expand its Asian business.

Australia and New Zealand Banking Group Ltd. (ANZ) is considering a bid for Dallas-based Lone Star Fund's controlling stake in Korea Exchange Bank currently valued at $4.1 billion as it looks to boost its presence in Asia, a person familiar with the situation said Wednesday.

The person, who didn't want to be identified, said that process is at a "very preliminary" stage.

"We are always looking at opportunities to develop our presence in Asia," an ANZ spokesman said without elaborating.

ANZ's apparent interest for KEB brings a fresh twist to the impending reformation of the Korean banking sector that is expected to start taking shape in the second half of the year. The government will finalise its privatisation roadmap for Woori Finance Holdings Co., the country's largest financial holding firm by assets, by end-June.

Local rivals KB Financial Group Inc. and Hana Financial Group Inc. are expected to compete fiercely for Woori, with the government likely to use the sales process to facilitate the emergence of a Korean financial heavyweight that can compete on the international stage. Some analysts have said that the loser in this Woori fight may then turn its attention to KEB.

View the full story in the Wall Street Journal.