The deal has seen NAB pivot after 21 years of wealth management, selling MLC for $1.4 billion, compared with when it bought the business for $4.56 million in 2000 from Lendlease.
NAB entered the agreement with IOOF last year, following its strategy of slimming down and simplifying the business to its core banking component in the royal commission aftermath.
The acquisition took effect and saw IOOF take control from 11.59pm on Monday (31 May).
“This successful exit of MLC Wealth simplifies our portfolio and allows us to continue to focus on our core business,” NAB Group chief executive Ross McEwan said.
“NAB is becoming a simpler, more accountable business, enabling us to more consistently get the basics rights and deliver on our ambition for customers and colleagues.”
Proceeds of the sale are expected to increase NAB’s group common equity tier 1 capital ratio by around 35 basis points.
For IOOF, the deal has established it as the largest retail wealth management player in Australia, doubling the size of its business to $494 billion in funds under management, administration and advice.
Around 84 per cent of MLC’s advisers (406 in total) have chosen to move with the business over to IOOF.
The group will now serve 2.2 million clients and superannuation members.
IOOF CEO Renato Mota said the acquisition had given his company a “strong platform for future growth”.
However, NAB will retain legal ownership of MLC’s advice entities for the purpose of completing advice-related remediation programs.
[Related: Investor lending continues rise: APRA]
Sarah Simpkins is the news editor across Mortgage Business and The Adviser.
Previously, she reported on banking, financial services and wealth for InvestorDaily and ifa.