ING Group has reached an agreement to sell its Australian investment management business, ING Investment Management, to UBS.
The business had $34 billion in assets under management (AUM) as of 31 March 2011, and $27 billion of this amount is managed on behalf of ANZ's wealth management business OnePath.
"This transaction supports ING's objective to actively manage its capital and portfolio of businesses to ensure an attractive and coherent combination for the announced potential IPOs of its insurance and investment management activities," ING Group said.
The transaction is subject to regulatory approval by the Dutch government and is expected to close in the fourth quarter of 2011.
ANZ has entered into a broader business relationship with UBS, under which UBS will provide investment advisory services.
"Our priority is to work closely with UBS as they transition to ownership of ING Investment Management Australia," ANZ Wealth managing director John van der Wielen said.
"We have plans to grow our Wealth business and this broader relationship with UBS Global AM will offer ANZ a number of strategic benefits for our business and customers."
"It will provide new opportunities as we leverage UBS Global AM's strengths in global investment management, research, asset allocation and advisory services," he said.
However, a spokesperson for ANZ said the acquisition terms did not include any guarantees that ANZ would keep its $27 billion with the business.
"No, but it is our intention to work closely with UBS," a spokesperson for ANZ said.
But ANZ did say there would be no immediate impact on customers and that all existing arrangements would remain in place in the short term.
"We are delighted with the INGIM acquisition and concurrent agreement with ANZ," UBS Global Asset Management Australia and New Zealand head Ben Heap said.
"The acquisition significantly increases the scale and distribution of our business while the agreement with ANZ provides a cornerstone relationship in the dynamic Australian retail market," he said.
The addition of INGIM brings UBS' total AUM in Australia to more than $60 billion.
"UBS Global Asset Management has a long history of delivering domestic and international investment solutions to its institutional and retail clients. We look forward to extending our offering to both ANZ and ING IM's clients," Heap said.
