National Australia Bank Ltd (ASX: NAB) shares are on the move on Thursday.
In morning trade, the banking giant's shares are up 0.6% to $29.94.
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Why are NAB shares rising?
Investors have been buying the bank's shares this morning after it announced a deal with Jarden Wealth.
According to the release, the two companies have agreed to combine their New Zealand wealth advice and asset management businesses into a newly formed entity.
The proposed transaction will bring together NAB's JBWere New Zealand and BNZ Investment Services businesses, together with Jarden Wealth and Harbour Asset Management to create a leading advice and asset management business for clients in New Zealand.
This newly formed entity, named FirstCape, will have NAB, Jarden Wealth, and Pacific Equity Partners (PEP) as its shareholders.
Under the proposed transaction, NAB and Jarden Wealth will each receive a cash payment along with a retained shareholding of 45% and 20%, respectively. Whereas PEP will acquire a 35% stake, with its investment used to fund the payments to NAB and Jarden.
The release notes that the transaction will create a leading wealth management business in New Zealand with a combined 113 advisers, NZ$29 billion of funds under advice and administration, and NZ$15 billion of funds under management. This includes NZ$5 billion of KiwiSaver funds under management.
NAB's Executive Private Wealth and CEO JBWere, Michael Saadie, said:
We're pleased JBWere New Zealand will be part of a leading asset management and wealth advisory business. At the same time, we are committed to continuing to grow our JBWere business in Australia, which is a critical part of NAB's integrated High Net Worth offering.
CEO JBWere New Zealand, Craig Patrick, adds:
This is an exciting opportunity to grow the JBWere New Zealand advisory business and provide JBWere New Zealand advisers a wide range of advice tools to continue to offer a high-quality advice proposition to our clients.
