Deutsche Bank sells out of NZ broker

Craigs Investment Partners is to become fully locally owned again. Photo / File

Deutsche Bank - Germany's largest bank - is to sell its 49.9 per cent stake in local broker Craigs Investment Partners back to the staff, thereby exiting its interests in New Zealand.

The ownership had been up in the air since July, when Deutsche announced a shake-up of its global business including the closure of its equities division and plans to cut €6 billion ($10.1b) of costs and axe 18,000 jobs globally.

Deutsche closed its New Zealand operation as part of a global overhaul in 2015 but kept its stake in Craigs.

Today Craigs said it had reached an agreement for staff to acquire Deutsche Bank's 49.9 per cent equity interest, for an undisclosed figure.

The deal is subject to approvals and is expected to be signed off by February 2020. It will mean Craigs, one of the country's largest brokers will be fully owned by staff.

Craigs said the ownership change would have no impact on its business, which includes a private wealth arm with $20b of client funds under management, institutional equities and research, investment banking and QuayStreet Asset Management.

Craigs also has a 50 per cent equity partnership with Wilsons Advisory and Stockbroking in Australia.

Craigs chairman Neil Craig and managing director Frank Aldridge thanked Deutsche Bank for their involvement with Craigs as a global strategic partner.

"We have enjoyed a nine-year relationship with DB, one that has proved mutually beneficial throughout a period that has seen the New Zealand financial markets evolve and our business grow exponentially."