Australian banks exiting Asian assets continues apace. Commonwealth Bank of Australia joins the list as it secures a buyer for its stake in Chinese insurer BoComm Life.
Commonwealth Bank of Australia (CBA) will offload its 37.5 percent stake in Chinese life insurer BoComm Life Insurance, the company said in a statement on Wednesday. CBA will sell the stake to Mitsui Sumitomo Insurance for $668 million. The transaction is subject to Chinese regulatory approval.
The completion of the deal to the Japanese insurer also fulfills a condition pertaining to the sale of CBA's life insurance business in Australia and New Zealand to AIA Group, which finews.asia reported at the time.
Indonesian Exit
«This transaction represents a further step in simplifying and focusing our portfolio and follows the announcement of the proposed sale of the Group’s life insurance businesses in Australia and New Zealand to AIA Group,» said Matt Comyn, CBA chief executive officer.
CBA's latest decision follows a spate of divestments by Australia's leading banks pruning their traditional banking business models and exiting sectors and markets not aligned to their new strategies.
Eyeing another exit, the Sydney-based CBA appointed advisers in April to undertake a strategic review of its Indonesian life insurance business, PT Commonwealth Life to advise on a possible sale as part of that review.
