NAB to acquire Goldman Sachs’ Aussie wealth management unit
03 Aug 2009
Australian banking major National Australia Bank (NAB) said on Friday it is acquiring an 80.1 per cent stake in Goldman Sachs' wealth management business in Australia, Goldman Sachs JBWere, for $99 million.
NAB will add to the acquisition price based on revenue performance related criteria for the business over the next three years.
Goldman's will continue to own a 19.9 per cent stake in the unit which will operate under the JBWere brand according to a joint statement released by both companies.
NAB said that the business will not make any material contribution to the banking group's return on equity during its first year.
The acquisition, which is subject to regulatory approval, is expected to be completed by the end of 2009.
JBWere will become a portfolio company in NAB's wealth management platform, joining MLC and NAB Wealth.
The unit will continue to focus on advisory activities for high net worth individuals and will distribute certain products from Goldman Sachs on either an exclusive or preferred basis.