NAB has been granted Federal Court approval to acquire neobank 86 400.
The bank has been in the process of collecting regulatory approvals to buy the neobank since January this year, and plans to use 86 400’s technology capability to advance its own digital bank offering, UBank.
NAB originally held 18.3 percent of 86 400 before announcing plans to purchase the remaining shares for $220 million.
According to NAB, the next step will see UBank customers moved onto the 86 400 technology platform.
Since the announcement of the proposed sale, NAB has had to gain various regulatory approvals including from the Treasurer, with the Federal Court support today the last hurdle for the bank.
The bank received approval from the Australian Competition and Consumer Commission (ACCC) last month on the grounds that the planned acquisition won't diminish market competition.
The Australian Prudential Regulation Authority (APRA) soon followed with its approval in April.
Approval of the purchase by 86 400 shareholders has also been received and will come into effect Wednesday May 12.
Implementation of the merger is expected to begin May 19.
UBank CEO Philippa Watson said combining UBank and 86 400 will assist NAB to deliver on its “long-term strategy to enhance the customer experience and meet their changing needs.”
“Together we will develop a leading digital bank that attracts and retains customers at scale and pace and creates the next generation of simple, fast and mobile banking solutions," she said.
NAB stated 86 400 and UBank will continue to operate as separate businesses "in the short term with no immediate changes expected for customers of either."
