ING Group (NYSE:ING) said that it has reached an agreement to sell its life insurance and wealth management venture in Australia and New Zealand to ANZ Banking Group, its joint venture partner.
ANZ currently owns 49 per cent of the joint venture. Under the agreement, ANZ will purchase the 51 per cent stake that it does not already own in ING Australia and ING New Zealand, while ING is seeking simplifying the organization be focusing on fewer, strong franchises that form a coherent group.
ANZ will pay ING EUR 1.1 billion in cash and become the sole owner of the two businesses. The transaction will generate an estimated net profit for ING of EUR 300 million. ING will retain its ING Direct, ING Investment Management, ING Wholesale Banking and ING Real Estate operations in Australia.
"The ING deal also gives us the flexibility to pursue further growth opportunities over the medium term without the constraints of a joint venture structure and supported by a well capitalized parent company," said ANZ Chief Executive Mike Smith.
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