New Pac leader born in banking sector

October 08, 2009 08:35:36 AM

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Papua New Guinea’s largest retail and commercial bank has agreed to buy Commonwealth Bank of Australia’s banking and insurance businesses in Fiji.

Bank of South Pacific yesterday entered into a Sale and Purchase Agreement with CBA.

The finality of the transaction is subject to regulatory approval by the Bank of Papua New Guinea and the Reserve Bank of Fiji.

The sale means BSP will takeover Colonial National Bank (formerly the National Bank of Fiji Ltd), Colonial Fiji Life Ltd and Colonial Managed Funds.

BSP has agreed to no job losses as a direct result of the acquisition.

BSP opened its doors in Fiji in December 2006 when it took over the Habib Bank Ltd in Suva after Habib Bank ceased its operations.

Apart from its two Fiji outlets, BSP also has branches in Niue and Solomon Islands.

Meanwhile, a senior executive of the Commonwealth Bank of Australia said that the buyout of Colonial Fiji will create a leading regional bank for Fiji and the South Pacific.

In an internal company message to Colonial Fiji staff earlier this year, CBA’s Group Executive for Financial Services Gary Mackrell said while he understood that there may be “some disappointment and concerns,” CBA strongly believed the buyout would be a good opportunity for Colonial Fiji.

”The outcome would align two strong and high performing companies operating in complementary markets, with similar customers and similar challenges,” he told staff in a letter.

“If the sale proceeds, I am very confident that Colonial Fiji’s 132 years of experience providing financial services in Fiji, combined with the scale and regional knowledge of BSP, will prove to be a successful combination.”

CBA said BSP’s approach was part of the bank’s regional expansion goals.

BSP has also requested that it be allowed to continue using the Colonial Fiji name and brand for a number of years.