NAB to take control of Goldman Sachs Unit

Wednesday 29th July 2009

National Australia Bank agreed to acquire a controlling stake in Goldman Sachs JBWere’s wealth management unit for A$99 million, plus performance-related bonuses over the next three years.

NAB will take an 80.1% stake in the business, which will be rebranded JBWere, with Goldman Sachs JBWere retaining 19.9%. The new entity will be folded into MLC & NAB Wealth, NAB’s wealth division, and will be able to tap certain products from its minority shareholder on an exclusive or preferred basis.

Private wealth is “a business with significant upside and JBWere adds to our capability and brands in that area,” said NAB chief executive Cameron Clyne, in a statement.

The Australian bank reported a A$431 million increase in revenue from trading in the six months ended March 31, as US investment banks, including Goldman Sachs Group, reported large second quarter profits as they took advantage of record levels of volatility in trading markets.

NAB shares slipped 0.4% to A$22.99 on the ASX today and have gained 7.5% this year.

JBWere has more than 22,000 clients, with assets under advice exceeding A$38 billion. It manages funds worth around A$10 billion.

The takeover is subject to regulatory approvals, and is expected to be completed by the end of the year.

NAB said it doesn’t expect any contributions to its group earnings to material in the first year.

Businesswire.co.nz

Comments from our readers

No comments yet