The ACCC has waved through IOOF’s acquisition of NAB’s wealth business, MLC Wealth Management, saying the deal is not likely to substantially lessen competition.

NAB announced in August that it had entered into a sale agreement to sell 100 per cent of MLC Wealth to IOOF for $1.44 billion. The bank will receive A$1.24 billion in cash and $200 million in the form of a five-year structured subordinated note in IOOF.

In addition, NAB expects to receive a pre-completion dividend of around $200 million from MLC.

The deal will result in a post-tax loss of around $400 million, based on the carrying value of MLC of $1.86 billion at June 30. The final loss will depend on separation and transaction costs, and net assets at completion.

The transaction includes MLC’s advice, platform, superannuation, investment and asset management businesses.

The ACCC said its review of the transaction indicated that the combined IOOF/MLC business would be competing with and constrained by several other large firms, along with a number of smaller firms for the supply of retail investment platforms.

The combined businesses would have a financial advice market share of around 10 per cent.

“Despite the profile and size of this transaction, it does not raise concerns under section 50 of the Competition and Consumer Act largely due to the fragmented nature of most of the relevant markets and strong constraints from remaining competitors,” the ACCC said in a statement.

IOOF was also the buyer of ANZ’s OnePath Pensions and Investments. The $850 million deal was completed earlier this year.