The National Australia Bank Ltd (ASX: NAB) share price is trading lower today despite the release of a positive update.
At the time of writing, the banking giant's shares are down 0.3% to $27.01.
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What did NAB announce?
This morning NAB provided the market with an update on its proposed acquisition of Australian neobank, 86 400.
According to the release, the Federal Court of Australia has made orders approving the scheme of arrangement under which NAB will acquire the remaining share capital in 86 400.
This was the final approval the bank needed for the acquisition, following the prior receipt of approvals from the Treasurer, the Australian Prudential Regulation Authority (APRA), and the Australian Competition and Consumer Commission (ACCC).
In light of this, the scheme is expected to become effective on Wednesday 12 May 2021 and implementation is expected to occur on 19 May 2021.
Why is it acquiring 86 400?
In January, NAB announced its intention to acquire 86 400 to accelerate the growth of its own digital bank, UBank. It believes it can achieve this by combining UBank's established customer base and name with 86 400's technology and innovation capability.
UBank's CEO, Philippa Watson, explained: "Bringing together UBank and 86 400 will help deliver on NAB's long-term strategy to enhance the customer experience and meet their changing needs. This will create a stronger and more competitive banking alternative for Australian customers."
"Together we will develop a leading digital bank that attracts and retains customers at scale and pace and creates the next generation of simple, fast and mobile banking solutions," she added.
This sentiment was echoed by 86 400's CEO, Robert Bell. He said: "Since day one, our mission has been to help Australians take control of their money. With all of the necessary approvals now received, we'll soon have the resources to reach many more people with our innovative, easy-to-use and award-winning products and features."
Despite today's weakness, the NAB share price is still up 18% year to date.
