A major step has today been taken in relation to the sale of the Colonial Fiji Group.

The Commonwealth Bank of Australia and Bank of South Pacific from Papua New Guinea have today entered into a Sale and Purchase Agreement for the Fiji operations of the Commonwealth Bank.

Bank of South Pacific has agreed to purchase National Bank of Fiji Limited trading as Colonial National Bank and Colonial Fiji Life Limited including associated companies with the group.

Final completion of the transaction is subject to regulatory approval by the Bank of Papua New Guinea and Reserve Bank of Fiji.

Commonwealth Bank of Australia said the signing of the Sale and Purchase Agreement follows several months of due diligence and negotiations.

The sale price is confidential between the two parties.

It has been confirmed that it will be business as usual at Colonial Fiji.

The Commonwealth Bank has agreed to support the transition for a period of time to ensure minimal disruption to the business, its employees and customers.

Commonwealth Bank of Australia also confirms that no long term decisions have been made.

For the moment, Colonial Fiji Managing Director, Laurie Mellsop will continue leading the business to ensure continuity and minimal disruption.

Bank of South Pacific has agreed to no job losses as a direct result of the acquisition and subject to normal performance criteria.