7 October 2009
National Australia Bank today confirmed it had received a letter from the Australian Competition and Consumer Commission (ACCC) stating that it would not intervene in the proposed acquisition of Challenger's mortgage management business.
Acquisition overview: On 18 August 2009, National Australia Bank announced it had reached an agreement to purchase the mortgage management business of Challenger for $385 million.
The proposed acquisition includes:
- The PLAN, Choice and FAST mortgage aggregation businesses;
- Challenger's multi-brand while label product capability;
- A select portfolio of approximately $4 billion of residential mortgages will be acquired at a discount to face value for loan loss provisions; and
- An interest of approximately 17.5% in Homeloans Ltd, with the potential to increase to approximately 41% subject to Homeloans Ltd shareholder approval.*
NAB Personal Banking Group Executive, Lisa Gray, said: "We welcome the ACCC's decision not to intervene in NAB's acquisition of Challenger's mortgage management business.
"This acquisition represents an important component of NAB Personal Banking's growth strategy. It increases our presence in the important broker distribution segment and we will have the capacity to grow and support CMM's broker networks well into the future," Ms Gray said.
Subject to all regulatory and other conditions being satisfied, NAB expects the acquisition to be completed by the end of the year.
Following completion of the transaction, CMM will be rebranded and run as a separate entity within NAB Personal Banking's broker division.
*The total purchase price of $385 million includes the amount payable if approximately 41% of Homeloans Ltd is acquired
|Luisa Ford||Gillian Griffiths|
|NAB Corporate Affairs||NAB Corporate Affairs|
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