CBA beats NAB to aquire Wizard Home Loans
Commonwealth Bank of Australia says it will acquire up to $4 billion of Wizard originated home loans. Aussie Home Loans is set to purchase the Wizard brand and distribution network for an undisclosed sum from Wizard parent company GE Money. The Commonwealth Bank owns a 33 per cent stake in Aussie. Executive chairman of Aussie Home Loans John Symond says his company began considering the deal upon hearing that NAB had not finalised a deal, and approached GE Money.
Commonwealth will acquire $2 billion of loans at the end of February, 2009 but the timing of the other $2 billion in loans will be decided soon.
National Australia Bank was looking to purchase the Wizard portfolio and last week sat in advanced talks to secure the acquisition. The sale of Wizard's Australian prime mortgage portfolio and brand comes a week after the company's New Zealand operations collapsed.
Wizard was once boasting the title of the faster growing home loan alternative in New Zealand, and had the financial strength of one of the world's largest companies.
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