anz-buys-ings-stake-in-insurance-and-wealth-management-jv

ANZ buys ING's stake in insurance and wealth management JV

ANZ pays $1.53 billion to increase its ownership in its Australian life insurance and wealth management joint venture to 100% û a move that it says became possible due to the financial crisis.

On Friday, Australia and New Zealand Banking Group ANZ acquired ING's 51% interest in its life insurance and wealth management joint venture in Australia and New Zealand for A$1.76 billion $1.53 billion, making it the sole owner of these businesses. Until now, the businesses have been run as a 4951 joint venture between the Australian and Dutch firms.

The price translates into 11x normalised calendar 2008 earnings for the businesses and 1.2x the embedded value on December 31, 2008. The deal is expected to be cash earnings per share accretive in financial year 2010, without taking into account significant synergies, ANZ said in a written statement.

The investor call that ANZ...

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