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- Financial Regulator APRA has approved ANZ’s (ANZ) sale of its One Path Pensions and Investment business
- ANZ will now sell the superannuation business to financial services company IOOF Holdings (IFL) for roughly $825 million dollars
- Moreover, the bank expects the sale will increase its APRA CET 1 capital ratio by around 20 basis points
- Approval from APRA was the last requirement for the sale and ANZ now expects the transaction to be complete by the end of January 2020
- Shares in ANZ are down 0.53 per cent, trading for $24.45
- Meanwhile, IOOF is up 0.64 per cent with shares selling for $7.86
The Australian Prudential Regulation Authority (APRA) has approved ANZ’s (ANZ) sale of its One Path Pensions and Investment business.
ANZ will now sell the superannuation business to financial services company IOOF Holdings (IFL) for around $825 million dollars.
Under the agreement, the two companies will enter into a 20–year strategic alliance which will allow ANZ customers to access IOOF superannuation and investment products.
The Sale
Approval from APRA is the last requirement for the sale which was first announced to shareholders in 2017. ANZ and IOOF now expect to complete the transaction by the end of January 2020.
IOOF CEO Renato Mota welcomed the regulator’s approval.
“APRA’s approval represents an important milestone and allows for the creation of an industry leading advice-led wealth management organisation,” he said.
ANZ Group Executive Wealth Alexis George explained that the sale will help the bank streamline its work.
“This sale remains consistent with our strategy to simplify our operations by focussing on retail and business banking in Australia and New Zealand, and Institutional Banking across the Asia Pacific region,” he said.
Moreover, the bank expects the sale will increase its APRA common equity tier 1 (CET1) capital ratio by around 20 basis points.
Shares in ANZ are down 0.53 per cent, trading for $24.45 at 1:50 pm AEDT.
Meanwhile, IOOF is up 0.64 per cent with shares selling for $7.86 at 1:51 pm AEDT.
