The agreement follows the strategic decision announced by NAB in 2018 to pursue an exit of MLC and is in line with NAB’s strategy to simplify and focus on its core banking business.
NAB chief executive Ross McEwan said the company has explored a range of transaction options and is confident this sale provides the best outcome for NAB shareholders and for MLC stakeholders.
The purchase price of $1.44 billion represents a multiple of 17.3x MLC’s cash earnings of approximately $83 million.
NAB said it also expects to receive about $220 million of surplus cash from MLC in the form of a pre-completion dividend.
The transaction is conditional on approval from APRA and the ACCC, with completion expected in the middle of 2021.
Shares in NAB (ASX:NAB) are trading 0.08 per cent lower at $17.91.