Westpac shares fell 0.8% at 11:15 am on a weaker day for banks, with ANZ down 1%, CBA down 0.5% and NAB down 0.7%.
Westpac will hold about $ 10 billion in auto loans and repay them over the life of the loans. The bank will gradually phase out new retail lending and customers can continue to borrow from the Consumer Products and Businesses division to purchase vehicles.
The deal is expected to be completed by the end of the calendar year, with about 200 Westpac employees joining Angle Finance, which eventually plans to hire up to 500 employees.
Angle Finance plans to issue up to $ 4 billion in consumer and commercial loans by Christmas. As a result of the deal, Angle will become the owner of 100 dealership agreements covering 1,200 dealerships.
The $ 1 billion loan received by Angle will cover cars that are on showroom and bought by the dealerships themselves. As part of the deal, he will not purchase consumer loans.
Corner owner Cereberus Capital manages approximately $ 55 billion ($ 72.5 billion) in alternative assets worldwide through lending, private equity and real estate strategies. Founded in 1992 Stephen Feinberg whose net worth is estimated at $ 2.5 billion.