Ashurst, Nishimura & Asahi and Herbert Smith Freehills have landed advisory roles on Nippon Life Insurance Company’s acquisition of an 80 percent stake in MLC Limited, a unit of the National Australian Bank (NAB), for A$2.4 billion ($1.7 billion).

The purchase, which marks the Osaka-headquartered company’s first foreign majority acquisition, is still subject to regulatory approval in both Japan and Australia. The deal is expected to conclude between September and December 2016, after which MLC will become a Nippon Life subsidiary.

The terms of the deal include a 20-year distribution agreement between NAB and MLC. NAB will keep the remaining 20 percent of MLC’s outstanding shares and will work with Nippon Life to grow MLC's business.

Ashurst advised Nippon Life, led by Melbourne corporate partner Natsuko Ogawa, with support from fellow partners Jane Harvey, Richard Bunting, Lisa Simmons, Con Tzerefos, Rehana Box, Peter Chalk, Vivian Chang, Barbara Phair and Tim Brookes.

A Herbert Smith Freehills team represented NAB, led by Melbourne partner Raji Azzam, with support from partners Baden Furphy and Julian Lincoln in Melbourne, and Michael Vrisakis in Sydney.

Nishimura & Asahi partners Kazuhiro Takei and Masaki Noda counseled Nippon Life on Japanese law aspects of the deal.

Australia is an attractive market for life insurers with average incomes higher than in emerging markets and a population of 23 million that is growing steadily.