ANZ Banking Group Ltd has continued its widespread geographical expansion in Asia, acquiring a 10 per cent stake in Vietnam investment bank Saigon Securities Incorporation for $US88 million ($102 million).
It is the second acquisition in Vietnam for Australia's third largest bank, which took a 10 per cent stake in retail bank Sacombank in the market in 2005 for $US27 million ($A31.52 million).
Established in 2002, Saigon Securities is Vietnam's largest broker, holding a 27 per cent slice of the market.
It provides broking and investment banking services like corporate advisory, financing and research to more than 30,000 customer accounts.
ANZ set up its first ANZ-branded Vietnamese branch in Hanoi in 1993 and opened a second branch in Ho Chi Minh City in 1996.
Both continue to cater to Australian travellers and businesses coming into Vietnam.
"ANZ was one of the first foreign banks to open in Vietnam and regards expansion in the country as one of its highest priorities," ANZ said.
ANZ and Saigon Securities had already been cooperating for some time on corporate bond issues for large Vietnamese companies, buoyed by a Vietnamese economy that has averaged GDP growth of more than 7.5 per cent in the last five years.
ANZ has made no secret of its plans to expand into Asia.
Outgoing chief executive John McFarlane said in April ANZ's acquisition priorities lay in Asia because opportunities were limited in Australia.
In November 2006, ANZ paid $383 million for an initial 13.5 per cent stake in Malaysia's fifth-largest bank, AMMB Holdings Berhad.
That same month, ANZ disclosed that it had acquired a 19.9 per cent interest in China's Shanghai Rural Commercial Bank (SRCB) for $328 million.
In March this year, ANZ took a 60 per cent stake in a Laotian bank.
ANZ has announced its intention to expand its international franchise in Malaysia, China, Guam and Laos.
ANZ also is interested in India and Thailand.
ANZ rival Commonwealth Bank of Australia Ltd is also active in the region, currently holding interests in the Hangzhou City Commercial Bank and Jinan City Commercial Bank in China.
It also has an Indonesian subsidiary, PT Bank Commonwealth.
Source: AAP
