ANZ ING joint ventures in Aus and NZ (PDF 32kB)

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. 

Key points

• 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. 

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