Financial services giant IOOF (ASX: IFL) has secured a discount of $125 million for the acquisition of ANZ's (ASX: ANZ) Wealth Pension and Investments business (ANZ P&I) called OnePath.
Additionally, ANZ has given IOOF a 'no objection notice' regarding the sale of its P&I business.
First announced in July 2018, IOOF will purchase ANZ P&I for $825 million, revised down from $950 million.
"The revised terms reflect both ANZ and IOOF's commitment to completing the transaction and it delivers greater certainty to ANZ P&I members and clients," says IOOF CEO Renato Mota.
"Despite a challenging operating environment for wealth management, the strategic rationale for the transaction remains compelling and we continue to be confident in the significant benefits it will deliver."
Last October IOOF said the acquisition of OnePath would scale the company substantially, with funds under advice up 34 per cent and financial adviser numbers up by around 700, or 71 per cent.
"The transaction will meaningful increase the scale and footprint of our core business as we continue to invest in delivery of member outcomes and execute our strategy to deliver accessible, advice-led wealth management for the benefit of all Australians," says Mota today.
ANZ group executive wealth Alexis George says the revised terms reflect changing market conditions and include lower overall warranty caps.
"This sale remains consistent with our strategy to simplify our operations by focussing on retail and business banking in Australia and New Zealand, and Institutional Banking across the Asia Pacific region," says George.
"While there has been a reduction in the sale price, there have been offsets included and it also provides certainty for our customers and staff."
The deal still requires approval from the Australian Prudential Regulation Authority.
Shares in IOOF are up 10.69 per cent to $7.04 per share at 11.35am AEDT.
Business News Australia
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