ANZ has agreed to deduct its price for the sale of its OnePath Pensions & Investments business and aligned dealer groups (ADGs) to IOOF by $125 million.
The price is down to $850 million from its previous $975 million and includes the $25 million ANZ already received for the sale of its ADGs in October 2018.
ANZ expects the transaction to complete in the first quarter of calendar year 2020 and is expected to increase ANZ’s APRA CET1 capital ratio by approximately 20 basis points.
“This sale remains consistent with our strategy to simplify our operations by focusing on retail and business banking in Australia and New Zealand, and Institutional Banking across the Asia-Pacific region,” said ANZ group executive wealth Alexis George.
“While there has been a reduction in the sale price, there have been offsets included and it also provides certainty for our customers and staff.”
The agreement includes termination rights for both ANZ and IOOF if the remaining condition of APRA approval is not satisfied.