In a surprise move ANZ announced it is selling its superannuation and financial planning businesses to IOOF Holdings for $975 million.
ANZ announced the sale of its OnePath pensions and investments (OnePath P&I) and aligned dealer groups (ADG) business to IOOF Holdings (IOOF). As part of the $975 million agreement, ANZ will also enter into a 20–year strategic alliance to make available IOOF superannuation and investment products to ANZ customers.
ANZ Wealth Australia group executive Alexis George said the bank is still reviewing options for its life insurance business. ANZ's progress on what was said to be a $4 billion sale of its wealth business had been protracted and finally ground to a halt when final bids were submitted to its advisor Goldman Sachs on 15 September.
Interest Waned
While the Australian lender under CEO Shayne Elliott has been working hard to address issues raised by MetLife, it is understood that rival bidder Zurich's interest in acquiring the whole of ANZ's wealth business had waned.
In a press release the bank put its own spin on the deal saying the sale of the pensions and investments and ADG businesses is consistent with ANZ’s strategy to create a simpler, better balanced bank focussed on retail and business banking.
Cultural and Digital Fit
«By partnering with IOOF, we are able to create greater value for our shareholders while also providing our customers with access to quality wealth products from a specialist provider with the right cultural fit, financial strength and digital capability,» said George.
The sale will now give IOOF $48 billion of funds under management, and it will become Australia’s second largest advice business by adviser numbers.IOOF is also now embarking on a $450 million equity raising to pay for the acquisition through Morgan Stanley.
