NAB's in a trading halt, 'material transaction' in the wings

Photo: Vince Caligiuri/Getty Images.

Shares in NAB are in a trading halt amid reports it is about to sell a big piece of its life insurance business to Japan’s Nippon Life.

The deal could be as big as $2.5 billion for 80% of the life insurance business unit, according to Bloomberg which quoted a report in Japan’s Yomiuri Daily newspaper.

The bank says it expects to make an announcement by tomorrow about a “material transaction”.

“The trading halt is requested pending an announcement by NAB of an update in relation to a material transaction,”the bank told the ASX.

The NAB is in the process of exiting non-performing businesses and concentrating on Australia and New Zealand banking.

The most recent exit from an investment was the bank’s interest in the South Dakota-based Great Western Bank.

The bank has also raised $5.5 billion so it can float off its troubled UK banking business, Clydesdale.

The bank is due to release its full year results tomorrow. A cash profit of $6.291 billion, a rise of 21.3%, is expected.

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