By Robb M. Stewart
MELBOURNE, Australia--Australia & New Zealand Banking Group Ltd. (ANZ.AU) will push ahead with a deal to sell its pension and investments business to IOOF Holdings, but has agreed to a lower price for the assets.
IOOF in a statement Thursday said the two companies had agreed to a purchase price of 825 million Australian dollars (US$558 million) for ANZ P&I, down from the A$950 million price tag that the pair had agreed two years ago and still subject to a completion adjustment for the net assets. The price excludes A$25 million that ANZ has already received a year ago for its aligned-dealers groups business.
IOOF also said the date after which either company could terminate the acquisition of ANZ P&I if there remain any outstanding conditions has been pushed back to the end of December from Oct. 17 previously.
If concluded, the acquisition of the assets will increase the scale and footprint of IOOF's core business. For ANZ, the exit is part of a strategy of simplifying its operations to focus on retail and business banking in Australia and New Zealand.
The agreement between ANZ and IOOF has yet to be approved by the country's prudential regulator.
Write to Robb M. Stewart at firstname.lastname@example.org
Corrections & Amplifications
This article was corrected at 0115 GMT to reflect that the previous A$950 million price tag for ANZ's pension-and-investment business excluded A$25 million that it received a year ago. The original version of this article misstated that the A$25 million was included in the original price.