Bank of Queensland to acquire CIT vendor finance unit in Australia
27 Apr 2010
Bank of Queensland Limited, a leading Australian financial institution, will acquire Sydney-based CIT Group (Australia) Limited and CIT Group (New Zealand) Limited, the vender equipment finance business of CIT Group Inc in the region.
US-based CIT Group, a leading provider of financing to small businesses and middle market companies, is concentrating on its US business after it emerged from bankruptcy in December.
Last month, CIT reported a $1 billion fourth quarter loss, excluding one-time items and accounting adjustments, as the lender was hurt by high borrowing and credit costs.
CIT is trying to re-establish itself after a disastrous foray into subprime lending, and one of the largest bankruptcies in US history.
BoQ did not disclose the size of the deal but said the acquisition, which is expected to close in the June quarter, will add around 15 per cent of its current equipment finance business of A$3.4 billion (US$3.2 billion).
"The business fits in with our focus on gaining greater market share in the SME segment and augments our existing equipment finance capabilities," CIT said in a release.
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