HSBC set to sell Aussie business

HSBC said today that it is close to selling its Australian asset management business to Challenger Financial Services, a local rival partowned by billionaire Kerry Packer.

The London-listed global lender said final terms had yet to be settled, and the two sides were also awaiting regulatory clearance.

Challenger Financial is 23% held by Packer, Australia's richest man. The company has launched an aggressive drive to expand its funds under management, and completion of the HSBC deal could expand its total portfolio by more than half.

The Australian group has A$6.5bn (£2.7bn) under management, while at the end of last year HSBC's Australian unit managed about A$3.5bn.

No details were given on the likely terms of the deal, nor a completion date.

After an extended restructuring, Challenger last month reported net profit of A$64.4m in the first half of the 2005 financial year.