Nat Mutual and MLC say I do
National Mutual and MLC's parent company Lend Lease have agreed to a merger of their life insurance and funds management operations.
Wednesday, January 21st 1998, 12:00AM
The announcement that financial services giants National Mutual and MLC's parent company Lend Lease Corporation are to partially merge sets the scene for further industry rationalisation this year.The two groups said yesterday that they would sign a Memorandum of Understanding for the proposed merger of their life insurance and funds management operations.
The combined group will have A$51 billion under management, making it the largest fund manager and second largest life insurer (after AMP) in Australasia.
It is expected that the merger will add up to A$900 million in shareholder value.
This merger is significant in the on-going shake-up of the funds management and life insurance industry as it involves two of the big players.
Previously, particularly in New Zealand, the merger and acquisition activity has been centred on the medium and small sized firms.
While the merger will create a powerful grouping in Australia the impact in New Zealand is likely to be different and will take some time to flow through.
National Mutual have a strong presence in the insurance and funds management markets, however MLC just has a small operation promoting its Australian unit trusts.
National Mutual NZ managing director Ross McEwan says it will be "business as usual" for National Mutual in New Zealand.
He expects many advantages of the merger, particularly in the technology, product distribution and product development area to flow through into the New Zealand operations
"Major positive benefits will flow through from this (merger) for our business," he says.
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