The wealth giant will buy MLC in a move that will reshape the face of Australia’s financial services industry.
IOOF has announced it will buy 100 per cent of MLC for $1.440 billion. The acquisition is expected to deliver in excess of 20 per cent earnings per share accretion, including $150 million of targeted pre-tax synergies.
“The opportunity to acquire a highly complementary business of the quality and size of MLC is compelling,” said IOOF CEO Renato Mota.
“MLC is a natural fit with IOOF and presents a unique opportunity to create value from synergies for the benefits of clients, members and shareholders. This is a once in a generation opportunity to create the leading wealth manager of the future.”
The new IOOF will be “Australia’s leading advice-led wealth manager”, with $510 billion in retail funds under management or administration – making it the “#1 retail wealth manager by FUMA” – , with 1884 advisers and $173 billion in superannuation funds under administration. It will manage the finances of 2.2 million Australians.
More to come.