Australia and New Zealand Banking Group Ltd today announced its funds management and life insurance joint venture with ING had been extended through the creation of a New Zealand joint venture.
As part of the extension, ING New Zealand will be established and will be 49 per cent owned by ANZ's
New Zealand subsidiary ANZ National Bank Ltd and 51 per cent owned by ING Group.
It will also include the transfer of ING Australia's New Zealand joint venture business to ING New Zealand.
The move will also see the sale of The National Bank of New Zealand's (NBNZ) funds management and life insurance business to ING New Zealand, resulting in a one-off net gain to ANZ of about $16 million in the 2005 financial year.
The changes are effective from today.
The creation of ING New Zealand is consistent with the 2002 joint venture agreement between ANZ and ING and was foreshadowed by ANZ at the time of the acquisition of The National Bank of New Zealand in 2003.
ANZ National Bank chief executive Sir John Anderson said the joint venture arrangements gave a unique New Zealand focus to ING and confirmed its position in funds management, insurance and property management in New Zealand.
"The joint venture allows us to develop and grow ING New Zealand in a way which best suits the needs of our New Zealand customers and market," Sir John said.
"It combines ING's experience and expertise in product management with the ANZ National Bank's strength in distribution and client servicing for the benefit of customers of both companies."
Sir John said that by leveraging the complementary strengths of ING and ANZ National Bank there was now a "unique opportunity to accelerate growth".
The NBNZ's $700 million in managed funds extends ING's position as the largest retail fund manager in New Zealand.
- AAP
