ING today announced the formation of a joint venture with ANZ, one of AustraliaÂ's major banks, to create a leading position in funds management and life insurance in Australia and New Zealand. The joint venture, to be established on 1 May 2002, will be known as ING Australia Limited.
ING Australia Limited will be owned 51% by ING Group and 49% by ANZ. Both shareholders will have an equal say in strategic decisions. There will be an equal Board representation with four ANZ nominees and four ING Group nominees. The Chief Executive Officer of ING Australia Limited will be Mr. John Wylie who, since early 2001, has been Managing Director of the ING business that will become part of the joint venture. The deal creates a business valued at AUD 3.75 billion with ING contributing businesses valued at AUD 2874 million and ANZ contributing businesses valued at AUD 879 million. Also, ANZ is making a capital contribution of AUD 960 million reflecting the relative value of the businesses contributed to the joint venture.
The joint venture will provide funds management and insurance products to ANZÂ's corporate and personal business under the ANZ brand and through professional adviser networks under the ING brand. It will outsource investment management activities to ING GroupÂ's specialist investment business, ING Investment Management, which will also acquire ANZÂ's Asset Management business in Australia. The combined cost base of the joint venture will be AUD 360 million and cost synergies created through the joint venture are expected to be 10-15% of this cost base per annum, to be achieved over a three to four year period, with the majority achieved by the end of 2004. In addition, there are considerable revenue synergies.
(source: ING Group)