NEW YORK ( TheStreet) -- Hana Financial Group Inc is buying a 51% stake in Korea Exchange Bank from Lone Star Funds, according to a report by The Wall Street Journal.

The report says Lone Star's stake rings in at about $3.8 billion.

The move would block Australia & New Zealand Banking Group ( ANZ) from buying the stake. ANZ has been conducting due diligence on Korea Exchange Bank with hopes of expanding its presence in East Asia through a potential buyout.

If Hana does acquire the stake in Korea Exchange bank it will not likely make a bid for the South Korean government's 57% stake in Woori Finance Holdings ( WF - Get Report).

--Written by Maria Woehr in New York.

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