IOOF announces plans to acquire MLC
Wealth group IOOF has announced it has entered into transaction agreements with National Australia Bank to acquire 100 per cent of NAB’s wealth management business, MLC, for $1.44 billion.
IOOF will acquire 100 per cent of MLC, including its financial advice, platforms and asset management businesses for a total purchase consideration of $1,440 million.
According to an ASX statement by IOOF, the acquisition will make IOOF the largest advice business with an estimated total of 1,884 advisers. The company also expects to have $510 billion in funds under management following the transaction.
The acquisition is expected to deliver in excess of 20 per cent earnings per share accretion, including $150 million of targeted pre-tax synergies.
IOOF chief executive Renato Mota said the scale will be critical for success and ensuring that both clients and shareholders benefit from the industry transformation.
“Merging two of the longest standing businesses in wealth management brings together a combined culture and common purpose of community spirit and supporting people to achieve their financial goals,” Mr Mota said.
“The combination of IOOF and MLC brings wide-ranging capabilities, technical expertise and a purpose-driven mindset to enable the new-era group to significantly enhance choice, accessibility and client experience.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.