(July 27): HSBC Holdings Plc is close to selling its Australia’s loans business to Blackstone Inc, people familiar with the matter said, as part of efforts to streamline operations under chief executive officer Georges Elhedery.

The US-based alternative asset manager has emerged as the likeliest buyer for the loan book after outbidding other firms, the people said, asking not to be identified because the information is private. Talks are ongoing and no final decisions have been made, the people said.

Representatives for HSBC and Blackstone declined to comment.

The Australian Financial Review earlier reported details of the transaction for a loan portfolio of more A$30 billion (US$21 billion or RM85.8 billion).

Australia’s A$2.5 trillion residential lending market is dominated by domestic banks, which are heavily reliant on this business to support profit. Commonwealth Bank of Australia has the largest slice of the market, though the industry has seen smaller competitors such as Macquarie Group Ltd grow market share quickly in recent years.

Under Elhedery, HSBC cut management layers, jobs and businesses. Last week, the London-based banking giant announced the sale of its Singapore insurance unit to Allianz SE, the latest in a string of transactions.

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