The Hague: Dutch banking and insurance group ING said on Friday it was selling part of its Australian and New Zealand operations to joint venture partner ANZ Bank for €1.1 billion ($1.62 billion).
ING said the sale was part of its ‘back to basics´ programme to simplify the group’s structure.
Under the terms of the agreement, ING said it would sell its 51% equity stakes in ING Australia and ING New Zealand, offering insurance and wealth management services, to ANZ, which becomes their sole owner.
“This transaction is another important step in executing our back to basics strategy,” ING Group chief executive Jan Hommen said in a statement.
“The sale of our insurance and wealth management operations in Australia and New Zealand is further proof of our determination to simplify the organisation by focusing on fewer, strong franchises that form a coherent group. This shows once more that our continued transformation is well on track.”
The deal should generate an estimated net profit for ING of €300 million, it said.
ING and ANZ merged their insurance and wealth management operations in Australia and New Zealand in 2002 and the business now employs a combined 2,700