IOOF secures OnePath Pensions and Investments business

17 October 2019

IOOF has been given the go-ahead to complete its acquisition of ANZ’s OnePath Custodians.

IOOF told the Australian Securities Exchange (ASX) today that it had received a “No Objections Notice” from both OnePath Custodians and ANZ in relation to the transfer of the ANZ Wealth Pensions and Investments to IOOF.

The announcement follows the Australian Prudential Regulation Authority’s recent loss of legal action against IOOF which acted as an impediment to completion of the transaction.

The company’s announcement said that, additionally, ANZ and IOOF had also agreed the following changes to the terms of the ANZ P&I acquisition:

  • a purchase price of $825 million for ANZ P&I, revised down from $950 million, with the purchase price remaining subject to a completion adjustment for the net assets of ANZ P&I.
  • a revised date after which either party may terminate the acquisition of ANZ P&I if there are any outstanding conditions precedent on that date. Previously that date was 17 October 2019, and the parties have agreed to extend that date to 31 December 2019, with each party having the ability to extend that date on a monthly basis up to but not later than 30 June 2020.
  • changes to warranty caps associated with reduced purchase price and an amendment to the Strategic Alliance Agreement allowing for an earlier termination right by either party.  

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