(29 September 2009 – Australia) ANZ today announced that it has bought out the remaining share of ING Australia.Banking giant ANZ used its internal capital to fund the purchase of the outstanding 51 percent shareholdings in the ANZ-ING wealth management and life insurance joint venture.
The cash purchase price for ING Group’s 51 percent holding in INGA and ING (NZ) was A$1.76 billion and equates to around 11 times the companies 2008 earnings.
ANZ chief executive officer, Mike Smith, said, that moving to full ownership of the wealth management and life insurance joint venture significantly strengthens the banks position in wealth management.
The purchase of the shares will strengthen ANZ’s position in wealth management and life insurance. It will also create a distribution network with 1,700 aligned financial advisers in Australia.
Both the chief executive officers for ING Australia and New Zealand will remain in their current positions.
As part of the transaction details ANZ has entered into a transitional service arrangement with the ING Group. This allows the company to have continued use of the ING brand for a period of up to 12 months while future branding is determined.
In connection with the transaction, ANZ has also agreed to purchase ING Group’s interests in the ING (NZ) Diversified Yield Fund and Regular Income Fund in New Zealand for A$55 million.
The completion of the deal is subject to regulatory approvals in Australia and New Zealand and is expected to conclude in the fourth quarter of 2009.