Following the transaction, ING Australia and ING (NZ) Holdings will become wholly-owned subsidiaries of ANZ. As part of the transaction, ANZ has agreed to enter into transitional service arrangements with ING Groep. This includes continued use of the ING brand for a period of up to 12 months. ANZ will continue to use ING Investment Management as its preferred provider of asset management services in the medium term. In New Zealand, the acquisition includes the ING New Zealand investment management business and two property trusts.

In connection with the transaction, ANZ has also agreed to acquire ING Groep's interests in ING (NZ) Diversified Yield Fund and Regular Income Fund in New Zealand for AUD55 million ($47.87 million). ANZ will fund the consideration for the acquisition from its internal capital.

The transaction is anticipated to complete in the fourth quarter of 2009.

Deal Value (US$ Million) 1531.97
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Announced: 2009-09-25

Deal Participants

Target 1 (Company) ING (NZ) Holdings Limited
Target 2 (Company) ING Australia Limited
Acquirer (Company) Australia and New Zealand Banking Group Limited
Vendor (Company)   ING Groep N.V.

Deal Rationale

The acquisition strengthens ANZ's position in wealth management and life insurance, and provides additional flexibility for growth. The transaction brings ANZ to third position in life insurance and fifth position in retail funds management business in Australia. The acquisition increases ANZ's revenue and brings cost synergies and also provides ANZ a strong distribution network with around 1,700 aligned financial advisors in Australia. The sale is a part of ING Groep's back to basics strategy and further simplifies its organization focus on fewer, strong franchises that form a coherent group. The sale proceeds will improve ING Groep's debt/equity ratio by 345 basis points.

% Acquisition 51%