IOOF has secured the sale of ANZ's OnePath pensions and investments business for $850 million, down from the original sales price of $975 million announced in October 2017.
ANZ said the new price includes around $25 million that it has already received for the sale of is ADGs in October last year, while the revised terms reflect changing market conditions and include lower overall warranty caps.
"The sale remains consistent with our strategy to simplify our operations by focusing on retail and business banking in Australia and New Zealand, and institutional baking across the Asia Pacific region," ANZ group executive wealth Alexis George said.
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."
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The deal remains subject to approval by the prudential regulator and is expected to be completed in the first quarter of calendar year 202. The agreement included termination rights for both IOOF and ANZ us the remaining condition of APRA approval is not met.
Both companies have agrees to extend the relevant date in the agreement to 31 December this year, with both having the right to extend the date until June 2020 under certain circumstances.
IOOF chief executive Renato Mota said: "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. 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. "
He added that the transaction will increase the scale of IOOF's "advice-led" wealth management business.
In May ANZ announced it had agreed to transfer a partial economic interest of its pension and investments business and the legal ownership of its aligned dealer groups to IOOF in July last year.
Under the agreement IOOF paid $800 million and ANZ paid a coupon rate on the debt note subscribed by IOOF.
ANZ said it expects the transaction to increase its APRA CET1 capital ratio by around 20 basis points.
ANZ/OnePath topped the list of worst-performing super funds in Stockspot's Fat Cat Funds Report this year.