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National Australia Bank (NAB) has this morning announced an agreement to purchase the mortgage management business of Challenger for $385 million.
The move will see NAB acquire a significant stake in the third-party distribution channel with around a third of all brokers to fall under its control.
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According to a release issued by NAB this morning the purchase will include the PLAN, Choice and FAST mortgage aggregator businesses and Challenger’s multi-brand ‘white label’ product capability.
In addition, a select portfolio of approximately $4 billion of residential mortgages will be acquired at a discount to face value for loan loss provisions.
The purchase also includes an interest of approximately 17.5 per cent in Homeloans Ltd, with the potential to increase to approximately 41 per cent subject to Homeloans shareholder approval.
NAB group chief executive officer Cameron Clyne said: “As I have said previously we will take advantage of compelling opportunities to enhance our organic growth capabilities.
“This acquisition provides additional distribution and capability in Australian mortgages.”
The diversified financial services group has $18.8 billion in mortgages under management and $73.2 billion in mortgages under administration.
Late last year NAB narrowly missed out on acquiring non-bank franchise group Wizard Home Loans, pipped by Aussie Home Loans at the eleventh hour.
