Under the sale, Colonial First State Global Asset Management is purchased by Mitsubishi UFJ Trust and Banking Corp for $4.2 billion, subject to completion adjustments, a statement from CBA said. 

The announcement of the sale completion “represents an important milestone towards executing CBA’s strategy to become a simpler, better bank”, according to the bank’s CEO Matt Comyn. 

The total consideration for the purchase price represents a multiple of 19.4 times Colonial First State’s unaudited pro forma FY19 net profit after tax of $218 million as well as a post-tax gain on sale of approximately $1.5 billion. 

CBA said the transaction is expected to deliver an increase of more than $3 billion of common equity tier 1 (CET1) capital, which will result in a pro forma uplift to the group’s CET1 ratio of 68 basis points on an APRA basis, as based on the group’s risk weighted assets. 

This email address is being protected from spambots. You need JavaScript enabled to view it.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

more on this topic

Investment insights

Investor sentiment on Australian commercial property market remains cautious

In the wake of recent Australian government budget announcements, Asian investors are exhibiting a cautious optimism towards the Australian commercial property market. Linda Rudd, CEO of Realside, ...Read more

Investment insights

The hidden concentration risk in Australian portfolios amid mega tech IPOs

Australian investors are facing a significant shift in their international equity exposure, driven by recent changes in major US equity indices. This shift, largely unplanned for by many investors, ...Read more

Investment insights

Private markets see a retail shift as firms adapt to new challenges

Private markets are undergoing a significant transformation as individual investors gain greater access, according to the latest research by State Street Corporation. The Boston-based financial ...Read more

Investment insights

Kevin Warsh signals a return to monetary orthodoxy as new Federal Reserve chair

Kevin Warsh, the newly appointed chair of the Federal Reserve, made a strong impression during his inaugural press conference, signalling a shift towards a more orthodox monetary policy approachRead more

Investment insights

GP-led transactions surge to record $108 billion, reshaping secondary market dynamics

In a remarkable development for the secondary market, GP-led continuation vehicles have emerged as the fastest-growing segment, with transaction volumes hitting an unprecedented $108 billion in 2025Read more

Investment insights

Jurisdictional risk opens door for savvy energy investors

The Australian energy sector is navigating a complex landscape marked by seasonal lows in global demand yet surprisingly high prices. As the sector braces for potential volatility, experts suggest ...Read more

Investment insights

Gold and AUD among Amundi's strategic picks as global risks persist

Amundi, Europe's largest asset manager, has released its latest investment outlook, highlighting a reasonable global growth forecast despite noticeable divergences between the United States and EuropeRead more

Investment insights

RBA's decision to maintain cash rate met with cautious optimism from financial experts

In a move that has drawn a mixed but largely positive response from financial experts, the Reserve Bank of Australia (RBA) announced today that it will hold the cash rate steady. The decision comes ...Read more