Goldman Sachs Considering Sale of Australia Businesses: Source -- Update
May 18 2016 - 2:20AM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Goldman Sachs Group Inc.'s (GS) Australian
asset management arm is considering the sale of the equities and
fixed income businesses, according to a person familiar with the
matter.
After growing the operation in recent years under local equities
head Dion Hershan, the Wall Street financial firm has launched a
review of alternatives for the continued expansion of the
businesses.
Options being considered include a local management buyout or an
outright sale of the domestic operations to a business such as a
pure-play asset manager, the person said Wednesday.
The review is in its early stages and no decisions have been
made, the person said. The review is focused on domestic products,
and there are no plans to stop selling global products to
Australian clients.
Earlier Wednesday, the Australian Financial Review on its
website reported that Goldman Sachs in an internal memo to staff
has said the businesses under review might best grow under new
ownership.
It comes after Swiss bank UBS Group AG last year withdrew from
its Australian wealth-management business following a management
buyout but said it remained committed to its investment banking and
asset management businesses in the country.
Goldman Sachs's asset management operation employs about 40
people in Australia, not all of whom are affected by the review,
and oversees about 9 billion Australian dollars (US$6.6 billion) in
the country.
-Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
May 18, 2016 02:05 ET (06:05 GMT)
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