ANZ's efforts to execute a trade sale for its UDC asset finance arm in New Zealand have come up empty, with the bank now mulling a stockmarket float of the business.David Hisco, the head of ANZ's Kiwi operations, yesterday revealed the float option after New Zealand's foreign investment regulator last year blocked a proposed sale to Chinese-based conglomerate, TIP-HNA Holdings."We have been looking at strategic options for UDC's future for some time as part of ANZ's strategy to simplify the bank and improve capital efficiency," Hisco said."While UDC is continuing to perform well and there is no immediate requirement to make decisions, after last year's planned sale to HNA did not proceed it makes sense to keep examining a broad range of options for UDC's future.""This will include exploring whether, subject to market conditions, an initial public offer would be in the interests of UDC's staff and customers, and ANZ's shareholders."New Zealand's leading corporate law firm, Chapman Tripp, observed in a report published this month that merger and acquisition activity was likely to remain strong in 2018 despite concern that planned reforms of the Ardern Labour Government could stymie offshore buyers."This year will also be marked by regulatory uncertainty and change," said legal partner, Tim Tubman."In particular, the proposed legislative changes to the Overseas Investment Act by the new government will pose significant challenges for some transactions in 2018."HNA's bid to secure control of UDC was shot down in December when the company declined to reveal to New Zealand's foreign investment regulator the identity of its main shareholders.While an independent New Zealand financial services provider - Heartland Bank - is believed to have expressed an interest in acquiring UDC in January, fund managers believe it would have great difficulty integrating the business into its existing operations.The absence of a realistic domestic buyer combined with the tightening of foreign ownership laws might leave ANZ with no strategic option beyond a stockmarket float."The range of strategic options we have for UDC, including approaches we have received regarding the business and the option of retaining it, will take a number of months to examine before any decision is made," Hisco said."In the meantime, it will continue to be business as usual for UDC."A sale of UDC would complement the business transformation strategy announced last year by ANZ group chief executive Shayne Elliott.Since Elliott took the reins in January 2016, the bank has been offloading assets, including parts of its wealth management and consumer finance operations.