Analyst Note| Shaun Ler |
No-moat AMP will sell its global equities and fixed income business, or GEFI--AMP’s listed equities and fixed income capabilities directly managed by AMP staff--to narrow-moat Macquarie. GEFI’s sale was largely foreshadowed and aligns with AMP’s simplification. Due to complete in first quarter 2022, AMP will receive up to AUD 185 million in cash from this transaction, with AUD 110 million payable on completion and up to AUD 75 million payable in two years, subject to revenue targets. Around AUD 60 billion from AMP’s public markets business will go to Macquarie as part of the sale.