Commonwealth Bank of Australia (CBA) has reached an agreement with Aussie Home Loans to acquire a 33% share in the company. The company said the acquisition comes as a strategic holding and provides it with an additional investment in the strong and growing home loan industry.
Commonwealth Bank CEO Ralph Norris said the Australian mortgage and housing industries are the backbone of the economy.
"A purchase of a home remains the largest single investment made by many consumers, it makes good strategic sense to look at alternative investments in this industry that will continue to bring benefits to shareholders and consumers," he said.
The Bank said it expected Aussie to maintain and build on its existing position in the mortgage supply and broker markets.
"As this market continues to develop, a strategic investment in one of the market leading providers in this industry is a natural fit for the group." Mr Norris added.
Without disclosing the price of the acquisition, Mr Norris said Aussie Home Loans would remain an independently-managed operation under the control of its founder and chairman, John Symond.
At 1252 AEST shares in CBA are up $1.23 or 3% to $42.33.