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Standard buys ANZ arm
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April 27, 2000: 5:47 a.m. ET
UK bank pays $1.3B for Grindlays unit, boosting Asian, Middle East presence
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LONDON (CNNfn) - London-based Standard Chartered Bank agreed Thursday to acquire the Grindlays unit of the Australia and New Zealand Banking Group (ANZ) for around $1.3 billion in cash, boosting its presence in Asia and the Middle East.
For Standard Chartered (STAN), already a major player in the Asian banking sector, the acquisition will add to its strength in asset finance in the Middle East and in the fast-growing Indian consumer-banking sector.
The U.K. bank's shares jumped 6 percent to 878 pence in early London trade.
 Standard said the ANZ deal will be earnings accretive in its first year and should allow it to save $110 million a year after three years. It hopes to complete the deal by the third quarter of 2000, subject to regulatory approval.
"This is an excellent opportunity to acquire a well-managed, quality business at the right price," Standard Chartered Chief Executive Rana Talwar said in a statement.
ANZ said it will continue to serve individual clients in the Middle East and south Asia through an alliance with Standard, but plans to focus on developing its core markets in Australia, New Zealand and southeast Asia.
"The transaction is a substantial step in our strategy to reduce group risk and complexity," ANZ Chief Executive John McFarlane said in a statement.
ANZ shares closed down 4 cents at A$11.98 in Sydney.
Separately, the owners of Indonesia's Bank Bali called a truce in their legal battle with the Indonesian government over ownership changes at the bank, which has been hit by allegations that it illegally funded politicians at the country's election last year.
The allegations prompted Standard to shelve a planned investment in the bank last year, and the prospect of a legal settlement could see it revive its interest. 
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Standard Chartered
ANZ
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