AMP
(ASX:AMP) has today announced that the $3.3 billion sale of its wealth protection business AMP Life to Resolution Life is highly unlikely to go ahead due to the challenges in meeting the conditions set by the Reserve Bank of New Zealand (RBNZ) for approval.
Last Friday Resolution Life notified AMP that RBNZ would not consider Resolution Life’s change of control application unless it agreed to change its current structure to include separate, ringfenced assets held in New Zealand.
AMP says addressing these requirements would adversely impact the commercial return of the sale for both AMP and Resolution Life.
The financial services provider has warned it will not pay a first half dividend in anticipation that the sale will not go ahead.
Shares in AMP
(ASX:AMP) closed 0.47 per cent higher at $2.15 on Friday.
