CFSGAM sale clears regulatory hurdles

Commonwealth Bank has received all regulatory approvals to sell its global asset management business to Japanese banking giant.

The $4.2 billion sale to Mitsubishi UFJ Trust and Banking Corporation (MUTB) is expected completion is in August, CBA said in company filings yesterday.

"The final sales proceeds are currently expected to be $4.2 billion, subject to completion adjustments," CBA said.

CBA announced its intention to demerge its asset management, mortgage broking and wealth businesses last year.

In October, CBA said it was approached by MUTB after its June announcement and entered an agreement with it to sell CFSGAM.

The remaining units were to be spun off as a separate entity called "NewCo" which included Colonial First State, Count Financial, Financial Wisdom, Aussie Home Loans and CBA's minority shareholdings in ASX-listed CountPlus and Mortgage. SocietyOne managing director and chief executive Jason Yetton was appointed as NewCo chief executive.

CBA has since put the demerger on ice, offloaded Count Financial business, and bid farewell to CFS executive general manager Linda Elkins.

Read more: CBACommonwealth BankCount FinancialCFSGAMNewCoAussie Home LoansBanking CorporationColonial First StateFinancial WisdomJason YettonLinda ElkinsMitsubishi UFJ Trust
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