Equity Trustees Limited (EQT) has agreed to acquire ANZ Trustees Limited from the Australia and New Zealand Banking Group for $150 million.
The transaction is expected to be completed in early July 2014 subject to regulatory approval.
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ANZ said that it has also entered into a new five year strategic agreement with Equity Trustees involving a range of exclusive client referral and service arrangements.
As part of the acquisition, ANZ will retain its philanthropic advice, estate planning, investment management and alternative investment capabilities.
Through this acquisition, ANZ’s clients will gain access to specialist trustee administration services while will determine a range of banking and other potential solutions for Equity Trustees’ clients.
Additionally, ANZ and EQT have agreed to explore other areas of mutual interest including the development of annuity style products to meet the needs of ANZ clients who need access to aged care and placement services.
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By GlobalDataEQT said that the gain from the sale is expected to be invested in a range of specific growth and efficiency initiatives across the bank. The deal will increase EQT’s funds under management by $2.7 billion.
ANZ chief executive of global wealth, Joyce Phillips, said: "The sale of ANZ Trustees is part of a continuing focus on the key elements of our wealth strategy which are to help our customers grow, protect and better connect with their wealth. Our broader long-term relationship with Equity Trustees will also add value to clients of both businesses."
Equity Trustees added it will fund the acquisition through an equity raising. It is targeting A$4 million a year in cost synergies within 18 months.
Robin Burns managing director Equity Trustees said: "Approximately 60 employees will join EQT in the next few months. They will be welcomed into an organisation that will allow them to continue to provide their valued services in a business that shares the same focus and commitment to clients."
