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CBA sells asset arm to Japan’s Mitsubishi UFJ for A$4.13b
[SYDNEY] Mitsubishi UFJ Financial Group Inc. agreed to buy Commonwealth Bank of Australia's global asset management unit for A$4.13 billion (S$4.06 billion).
Sale of the A$213 billion asset manager accelerates chief executive officer Matt Comyn's planned overhaul of Australia's biggest lender to focus on its more-profitable domestic retail banking operations.
Deal means Colonial First State Global Asset Management won't be included in Commonwealth Bank's previously announced plan to spin off its wealth management and mortgage-broking business.
MUFJ is paying 17.5 times CFSGAM pro forma net income for fiscal 2018 to gain greater exposure to asset management outside Japan.
Like its rivals, Commonwealth Bank is facing a much tougher operating environment as the housing market slowdown crimps revenue growth and compliance costs rise. As it tries to return to its Australian banking roots, the bank recently sold its Indonesian life insurance arm and offloaded its South African digital business.