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The battle to take control of Wizard Home Loans, as reported a few weeks ago by Marquette Turner, is over. Despite expectations that National Australia Bank would take control of the brand and franchise network, the race has been won by Aussie Home Loans.
GE Money has offloaded its Australia and New Zealand mortgage offshoot for an undisclosed amount, but it is likely to be considerably less than the $400 million AUD it paid for it, given the drastic changes in the economic climate.
As part of the deal, the Commonwealth Bank of Australia (CBA) will sell its 33% ownership of Wizard to Aussie Home Loans, whilst at the same time acquiring up to $4 billion AUD of mortgages originated by Wizard, dealing another blow to NAB’s expansion efforts.
The deal suggests that the non-bank sector still has some life in it yet.
The sale of Wizard to Aussie Home Loans is expected to be completed by the end of February 2009, around the same time that CBA will take hold of the first $2 billion AUD of loans by the end of February 2009. CBA remains in discussions with GE Money over acquiring the additional $2 billion of loans.