National Australia Bank, BNZ's Australian parent, will buy 80.1% of Goldman Sachs JBWere's private wealth management business for high net worth clients in Australia and New Zealand, branded JBWere. NAB will outlay A$99 million for JBWere with additional performance related consideration payable dependent on revenues generated by the business over a period of three years. Goldman Sachs JBWere will retain 19.9% of the ownership of the business. "JBWere is a leading wealth advisory business with more than 22,000 active client relationships, assets under advice exceeding $38 billion, and funds under management of around $10 billion," NAB said. "JBWere advisers will retain full access to the existing range of services, investment research and products currently available through Goldman Sachs JBWere, as well as accessing additional services from NAB and MLC (NAB's Australian wealth business)." NAB said the contribution to NAB Group earnings and ROE is not expected to be material in the first year. The acquisition of NAB's interest in JBWere is subject to regulatory approvals and is expected to be completed by the end of 2009.
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