SYDNEY - [AAP] Australia and New Zealand Banking Group (ASX: ANZ) has had the sale of its New-Zealand finance business UDC Finance to Chinese logistics company HNA Group blocked by a regulatory body.

The lender says New Zealand's Overseas Investment Office had declined HNA's application to buy the business for $NZ660 million ($A626 million), and unless HNA can get the decision overturned the sale will not proceed.

ANZ NZ chief executive David Hisco said the lender is unsure whether HNA will appeal against the decision.

"If the sale does not proceed, we'll assess our strategic options regarding the future of UDC," Mr Hisco said on Thursday.

He said there was no urgency to make a decision about the UDC business, given the strength of the lender's current capital position following the recent sale of its life insurance arm.

"UDC's focus remains on its core business of financing vehicles and equipment for people and companies across New Zealand," he said.

"So, it will be business as usual for our staff and customers."

ANZ said the decision would have no impact on the $A1.5 billion on-market buy back of shares, which was announced on Monday following the completion of the sale of its stake in Shanghai Rural Commercial Bank.

 

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