National Australia Bank has agreed to sell its National Australia Trustees business to rival IOOF.
IOOF’s trustee business, Australian Executor Trustees, provides estate and trustee services to private clients alongside a superannuation and corporate trust business. National Australia Trustees is present in Western Australia, New South Wales, Queensland and Victoria and provides wealth planning services to Australians.
'IOOF has a strategy of growing organically and through acquisitions. It has made 30 aquisitions since 2009,' a spokesperson told Citywire Asia.
In a release, IOOF's managing director Christopher Kelaher said that the NATL business, which has $1.8 billion in assets under management, 'is a strong strategic fit.'
It will grow its charitable and compensation trust businesses with the deal, the spokesperson added. Australian Executor Trustees has AUD 30.6 billion ($23.2 billion) in assets under management.
Completion of the sale is subject to regulatory approval and is expected to be finalised in the next few months.
National Australia Trustees CEO, Andrew Rimmer, said, 'This is the right outcome for our customers and follows a strategic review by NAB of the NATL business.'