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The Commonwealth Bank (CBA) today revealed that it has reached an agreement to purchase a 33 per cent stake in Aussie Home Loans (Aussie).
The acquisition, according to CBA, is a “strategic holding” and provides it with “an additional investment in the strong and growing home loans industry”.
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“As Australia’s largest home loan provider it makes good strategic sense to look at alternative investments in this industry that will continue to bring benefits to shareholders and consumers,” CBA CEO Ralph Norris said.
“We understand that there are some consumers that seek the advice and assistance of mortgage brokers in helping them select a home loan option that best suits their needs and circumstances.
“As this market continues to develop, a strategic investment in one of the market-leading providers in this industry is a natural fit for [CBA].”
According to Mr Norris, Aussie will continue to be an independently managed and run operation under the control of founder John Symond.
The bank expects Aussie to “maintain and build on its existing position in the mortgage supply and distribution markets”.
John Symond reinforced that the group would remain independent although strengthened through the CBA investment as it can source wholesale funds for its branded suite of mortgage products from the bank.
“We will remain strongly independent, maintain and broaden our alliances with other financial services groups to source the best products available for our customers,” Mr Symond said.
“The difficult conditions in the credit markets have presented Aussie with a great opportunity to enhance our leadership position in the non-bank sector and continue our position as a consumer champion.”
Published: 29-08-08
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