ASB to integrate Sovereign and Colonial

The trigger for the integration was the deal last week where ASB's parent, Commonwealth Bank of Australia, acquired the full ownership of ASB.

ASB Bank group managing director says the combined group will be the largest financial services company in the country.

It will have annual premium income of $460 mill, it will be the second largest fund manager with $2.2 bill under management and it will be the fifth largest and fastest growing bank with assets of $17.4 bill.

Norris says a set of integration teams have been established to work out the final shape of the business. He expects that a clear picture will emerge in about 6 weeks time.

While many decisions, such as which brand(s) to use yet to be made a number of other things have been settled.

Sovereign group managing director Ian Hendry will head the combined business and Colonial managing director David May "has decided to step aside to pursue other interests".

The business will be headquartered in Sovereign's Takapuna office. However, a substantial presence will be kept in Wellington.

Norris says CBA is currently reviewing its brands and that process will determine what brands are used in New Zealand.

"It's business as usual with both brands at this point."

He says there will be a reasonable degree of product rationalisation in the integration business.

The integration means ASB will end up with three distinct funds management styles, ranging from Colonial First State's truly active philosophy to the index approach adopted by ASB Bank.

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