ANZ has closed the divestment of its OnePath Pensions & Investments (OnePath P&I) business to IOOF Holdings Limited (IOOF) for $850m.

The divestment price also consists of around $25m that ANZ already received for the sale of its Aligned Dealer Groups in October 2018.

According to ANZ, proceeds from the transaction will help to increase its CET1 capital ratio by around 20 basis points.

In the financial results, ANZ has reported this business as part of discontinued operations since the first half of 2018.

This deal also closes the firm’s multi-year strategy to simplify its wealth business which commenced in 2016.

In October 2019, ANZ agreed for a revised price for the sale of its OnePath P&I business and Aligned Dealer Groups (ADGs) to IOOF Holdings Limited (IOOF) of $850m.

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This amount was a reduction by $125m from the original sale price of $975m announced in October 2017.

The terms were revised due to changed market conditions and include lower total warranty caps besides certain changes to the strategic alliance arrangements.

ANZ group executive for wealth Alexis George had then said: “This sale remains consistent with our strategy to simplify our operations by focussing on retail and business banking in Australia and New Zealand, and Institutional Banking across the Asia Pacific region.

“While there has been a reduction in the sale price, there have been offsets included and it also provides certainty for our customers and staff.”