ANZ to acquire full ownership of ING wealth management, life insurance and advice businesses in Australia and New Zealand
ANZ today announced it had reached agreement with ING Group to acquire ING Group’s 51% shareholdings in the ANZ-ING wealth management and life insurance joint ventures in Australia and New Zealand for A$1,760 million.
ING Australia Limited (INGA) and ING (NZ) Holdings Limited (ING (NZ)) will become whollyowned subsidiaries of ANZ on completion.
The acquisition reflects an opportunity to bring certainty to the future of the joint ventures between ANZ (49%) and ING Group (51%) that were established in 2002.
Cash purchase price for the ING Group’s 51% holdings in INGA and ING (NZ) of A$1,760 million equates to around 11 times normalised 2008 earnings and 1.2 times 31 December 2008 embedded value.
Consideration for the acquisition will be funded from ANZ’s internal capital. Post acquisition ANZ will retain its strong capital position with a pro forma Tier 1 capital ratio of 9.5%. • Transaction is expected to be cash earnings per share accretive in FY2010 pre-synergy benefits.
Strengthens ANZ’s position in wealth management and life insurance, and provides additional flexibility for growth. - #3 position in life insurance in Australia. - #5 position in retail funds management in Australia and a leading position in New Zealand. Total funds under management amounts to A$45 billion as at 31 July 2009. - A strong distribution network with around 1,700 aligned financial advisers in Australia, relationships with non-aligned planners and existing distribution through the ANZ network.
Significant revenue and selected cost synergies expected. Additional flexibility for ANZ to pursue wealth management opportunities without the constraints of joint ownership.
Transaction subject to regulatory approvals in Australia and New Zealand.