The Commonwealth Bank Group has reached an agreement with the founder and executive chairman of Aussie, John Symond to acquire a 33% share in his company Aussie Home Loans.
Commonwealth believes that the acquisition of a minority shareholding by the group is a strategic holding and provides it with an additional investment in the growing home loan industry in Australia.
The group will have a minority representation on the Aussie board, with no management involvement in the day-to-day running of the company.
Commonwealth Bank’s CEO Ralph Norris indicated that Aussie will continue to be an independently managed and run operation under the control of Mr Symond. The bank expects Aussie to maintain and build on its existing position in the mortgage supply and broker markets.
Mr Norris added: The Australian mortgage and housing industries are the backbone of the economy and the purchase of a home remains the largest single investment made by many consumers. 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.