Dutch banking giant ING has signed a memorandum of understanding with ANZ, one of Australia’s major banks, with a view to establishing a joint venture in funds management and life insurance in Australia and New Zealand.

The proposed joint venture, to be known as ING Australia Ltd, would be owned 51% by ING and 49% by ANZ, with both parties having an equal say in strategic decisions.

“This Australian joint venture would be perfectly in line with the overall group strategy to expand our distribution capability and leverage our broad product skills and global strengths, particularly in asset management,” said ING Group executive board member Fred Hubbell.

The joint venture would include the bulk of ANZ’s funds management and life insurance operations. It would also include all of ING’s funds management and life insurance operations, and most of its distribution operations. It would manufacture, market and service products under the ING brand for distribution through professional adviser networks and under the ANZ brand for distribution through ANZ bank channels.

The joint venture would not include ING’s existing general insurance interests and related distribution operations, ING Bank’s retail and wholesale operations (including ING Direct), and ING Barings. ING Real Estate and ING Investment Management are also not included in the joint venture. It is intended that ING Investment Management would provide investment management services to the joint venture. ING Investment Management would acquire ANZ’s asset management business in Australia.

ING expects to be able to make a full announcement regarding the joint venture in March and does not intend to make any further statements until then.