Westpac Banking Corp has bought the 40 per cent stake held by the Government of Tonga in Westpac Bank of Tonga for an undisclosed sum.
The move gives Westpac outright ownership of the Tongan operation, after the government decided to offload its interest as part of a divestment program.
"The acquisition aligns with Westpac's growth strategy in the Pacific and its commitment to the region," the bank said.
Westpac said it bought the interest for a "fair market price".
Tonga's minister for Finance & National Planning, Public Enterprise and Information, Afu'alo Matoto, said the government acknowledged that the banking industry in Tonga had reached maturity and that it's active participation in the bank is no longer required.
"It is important that government investment be divested to provide a level playing field for the industry," he said.
Westpac has been in Tonga since 1974.
The bank's South Pacific operations also cover the Cook Islands, Fiji, Samoa, Solomon Islands, Vanuatu and Papua New Guinea.
