The ANZ Group Holdings Ltd (ASX: ANZ) share price is under the microscope after revealing an ANZ Workline acquisition.
ANZ is one of the largest banks in Australia and New Zealand. ANZ Worldline is a joint venture between ANZ and Worldline, with headquarters in Melbourne.
The business ANZ Worldline provides Australian-based businesses with access to point of sale and online payments technology. ANZ and Worldline hold a 49% and 51% interest, respectively, in ANZ Worldline (which started in 2022).
ANZ Worldline
The ASX bank share said that this acquisition will enable ANZ to directly provide our customers with a holistic bank offering as part of its ambition to be a leading payments and transaction bank in the region.
ANZ will bank Worldline’s 51% share for an enterprise value of $89 million, with an estimated implied equity value of approximately $30 million.
The ASX bank share has estimated that completion will have an approximately 6 basis points (0.06%) impact on level 2 common equity tier 1 (CET1).
The acquisition is subject to Australian Competition and Consumer Commission (ACCC) approval, completion is expected to occur in the second half of FY26.
ANZ looked to reassure customers by saying there will be no change to the existing ANZ Worldline operations after completion – customers can continue to use ANZ Worldline services and products as they do today.
Management comments
The ANZ Managing Director of institutional transaction banking Lisa Vasic said:
The ANZ 2030 strategy puts transaction banking at the centre of what we deliver to customers – whether it’s improving their experiences, offering them
leading technologies and platforms, or keeping them safe.This acquisition will allow us to strengthen our direct relationship with our customers and better meet our customer’s needs, as we continue to focus on providing our small business customers, right up to our largest Institutional customers, with a compelling merchant proposition.
Final thoughts on the ANZ share price
I don’t think this is a market-moving announcement by the business and ANZ didn’t list this announcement as an important one. But, the better service it can provide customers, the stronger its customer retention (and potential growth) could be.
Even so, there are other ASX dividend shares I’d rather buy for my portfolio that could be a better long-term buy.
