CMC Markets acquires 500,000 stockbroking clients from ANZ for A$25m
ANZ Share Investing clients will benefit from lower brokerage charges across four major international markets and the local Australian market, according to CMC Markets.
CMC Markets has acquired Australia and New Zealand Banking Group Limited’s (“ANZ”) Share Investing client base to CMC for AUD$25 million.
The agreement will include ANZ handing over half a million clients of its share investing services to the online trading and institutional trading platform, with total assets in excess of AUD$45 billion.
CMC Markets’ existing cash resources will fund the AUD$25 million consideration as the deal marks another significant step in the ongoing diversification of the company’s global business and in the Australian market.
The broker is thus addressing the high demand for retail stockbroking services in a very strong period for the asset class worldwide.
CMC has been the white-label technology partner for ANZ’s share investing business since 2018, having generated £39.5 million in net trading revenue for CMC in FY 2021.
The AUD$25 million deal for ANZ’s 500,000 clients also means that partnership will come to and end as CMC’s trading technology will no longer power ANZ’s share investing business.
Lord Cruddas, Chief Executive Officer, commented: “This transaction is part of our strategy to create a non-leveraged investment platform and forms part of our longer-term goals for the company. As this new venture expands and develops, we will be able to offer more products, including third party funds and tax wrappers, directly to our clients. This is a further step towards the diversification of CMC’s earnings and complements the launch of our new investment platform in the UK, aligning our business strategy across our core geographies.”
“I would like to take this opportunity to extend a warm welcome to our new share investing clients, and also thank our colleagues at ANZ Bank, with whom we have worked closely over the last three years to put clients’ needs first.”
The new 500,000 clients onboarded by CMC will be offered a wide range of additional benefits currently unavailable with ANZ, including its mobile apps and complementary education tools and resources.
ANZ Share Investing clients will also benefit from lower brokerage charges across four major international markets and the local Australian market, according to CMC Markets, who will have the opportunity to drive greater value from its enlarged client base.
The deal has removed the uncertainty around the finite term of the existing ANZ white label partnership, which will end in 12 to 18 months as clients transition platforms.
CMC Markets serves retail and institutional clients through regulated offices and branches in 12 countries, with a significant presence in the UK, Australia, Germany, and Singapore.
