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- IOOF Holdings (IFL) has completed its purchase of MLC Wealth from Big Four member and fellow ASX-lister NAB (NAB)
- The company announced the purchase last year, as part of its aim of becoming Australia’s largest wealth manager
- The purchase has doubled the size of the IOOF business to $494 billion in funds under management, administration and advice
- On market close today, IOOF is up 0.77 per cent and is trading at $3.95 per share
IOOF Holdings (IFL) has completed its purchase of MLC Wealth from Big Four member and fellow ASX-lister NAB (NAB).
This acquisition combines two of Australia’s oldest leading wealth managers
IOOF announced the $1.4 billion purchase last year, as part of its aim to become Australia’s largest wealth manager.
The purchase has doubled the size of the IOOF business to $494 billion in funds under management, administration and advice.
Notably, there will be 406 MLC financial advisers joining IOOF’s licensees on day one.
“This acquisition is truly transformational for IOOF as it positions us as the leader of a new era of wealth management in Australia, giving us a strong platform for future growth,” CEO Renato Mota said.
“Today we become a new IOOF. We have the strategic intent, the talent, and now the scale, to deliver our advice-led wealth management proposition to more Australians than ever before. While this acquisition delivers immediate value to our shareholders, we consider its potential for medium and long-term value even more compelling,” he added.
From today, the combined companies have a leadership and management structure in place and is operational.
“While the financial services industry in Australia is transforming, the wealth management sector system growth continues to be strong, with a five-year compound annual growth of superannuation assets of 9 per cent per annum. A bigger and better IOOF will be positioned to take advantage of these opportunities by being at the forefront of the industry transformation,” Renato concluded.
On market close today, IOOF is up 0.77 per cent and is trading at $3.95 per share.
