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CBA clears regulatory hurdle to sell BoCommLife stake

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Commonwealth Bank of Australia (CBA) expects to wrap up the sale of its 37.5% stake in Chinese insurer BoCommLife by the end of this month after the deal finally secured regulatory approval in China.

The bank will receive a final sale proceed of $886 million from Japan’s MS&AD Insurance Group Holdings, the parent company of Mitsui Sumitomo Insurance, CBA said in a statement last week.

CBA announced the divestment in 2018 and later had to quarantine the sale so that it could proceed to sell CommInsure Life to AIA.

The bank says the total increase in unaudited post-tax statutory earnings from the BoComm sale and other divestments is about $840 million and will be recognised as a non-cash item in its first-half results for the 2020/21 financial year.