Listed financial services firm MMC Contrarian (MMC) does not anticipate the acquisition of MBF Life and ClearView Retirement Solutions will result in widespread redundancies for the group.
MMC informed shareholders yesterday the $195 million acquisition of the two Bupa Australia life insurance and wealth management businesses would go ahead, as well as a change in company name, after securing regulatory approval from the Australian Prudential Regulation Authority and the Foreign Investment Review Board.
MMC managing director Simon Swanson said there would be minor staff changes as the company moved to accommodate the acquisition.
"As part of the agreement all staff will come across. There will be some duplication, but not much. Obviously there's not much in MMC," Swanson said.
He said the next phase of development for the group will be to expand further into the life insurance and wealth management sector.
"The first thing is to get hold of the business, stabilise it, and look to grow it firstly through the Bupa alliance across life insurance and wealth management, and secondly extend into the credit union market and then move into the IFA [independent financial adviser] market for both life insurance and wealth products towards the end of next year," Swanson said.
At this stage, the company is not looking to make similar large-scale acquisitions.
"It's not our intention to be highly acquisitive. Because of all the acquisitions at the large end of town, our role is to fill the void left by those acquisitions and give the independent market choice," he said.
The acquisition is expected to be completed by 11 June, with the company to be renamed ClearView Wealth Limited.
