BMO Financial Group has announced a definitive agreement to acquire the capital markets business of Euroz Hartleys Group, a move that will significantly expand BMO's footprint in Australia. The transaction, valued at approximately $100 million, is expected to close in the second half of 2023, subject to regulatory approvals.
Details of the Acquisition
Under the terms of the agreement, BMO will acquire the corporate advisory, equities research, sales and trading, and wealth management operations of Euroz Hartleys. The acquisition includes the transfer of key personnel and client relationships. BMO will also gain access to Euroz Hartleys' strong presence in the resources and energy sectors, which aligns with BMO's global focus on these industries.
According to a statement from BMO, the acquisition will enhance its ability to serve clients in Australia and the Asia-Pacific region. BMO's CEO, Darryl White, commented: 'This acquisition is a strategic step in expanding our global platform and deepening our capabilities in the Australian market.'
Impact on BMO's Global Strategy
The acquisition is part of BMO's broader strategy to grow its international operations, particularly in the Asia-Pacific region. BMO already has a significant presence in Canada and the United States, and this deal will strengthen its position in Australia. The capital markets business of Euroz Hartleys generated approximately $50 million in revenue in the last fiscal year, according to sources familiar with the matter.
BMO expects the acquisition to be accretive to earnings in the first full year after closing. The bank plans to integrate the acquired business into its existing global capital markets division, which includes operations in London, New York, and Toronto.
Euroz Hartleys' Perspective
Euroz Hartleys Group, a Perth-based financial services firm, will retain its funds management and corporate trust businesses after the sale. The group's CEO, Ian Parker, stated: 'This transaction allows us to focus on our core funds management and trust operations while providing our capital markets clients with access to BMO's global platform.'
The deal is subject to approval from the Australian Securities and Investments Commission (ASIC) and other regulatory bodies. Both companies expect the transaction to close by the end of 2023.
