Global investment banking behemoth Goldman Sachs has secured full control of the Australian and New Zealand business, Goldman Sachs & Partners, after support for the deal was secured from at least 75% of the 133 Australasian partners and owners.
The deal see Goldman Sachs buy out the partners' 55% stake in the Australasian operation, giving it 100% ownership. The group, says, however, the proposed acquisition is subject to regulatory approvals and isn't expected to be complete until July 1. The Australasian business will then be fully integrated into Goldman Sachs' global operations.
A minimum 75% shareholder acceptance was required for Goldman Sachs to acquire the 55%, which has now been secured.
As reported by interest.co.nz last month, the deal expected to give the local Goldman Sachs operations more opportunity to leverage a stronger balance sheet to expand into areas such as forex, derivatives, commodities, debt markets and corporate lending. Subsequent to that story, Goldman Sachs confirmed a formal buyout process was under way, with Lloyd C. Blankfein, Goldman Sachs' chairman and CEO, saying Australia and New Zealand represented an important part of the group's growth strategy.
The buyout will be a windfall for the Goldman Sachs & Partners owners, about eight of whom are New Zealand-based. The Australian Financial Review has reported that the deal values Goldman Sachs & Partners at between A$800 million and A$1.2 billion. Based on the mid-point value of A$1 billion, the partners would split about A$550 million.
The Australian and New Zealand joint venture, formed in 2003, was formerly known as Goldman Sachs JBWere. An 80% stake in wealth management business JBWere was sold to BNZ's parent, National Australia Bank, in 2009.