(9 September 2010 – Australia) The Australian Competition and Consumer Commission (ACCC) has today announced that it remains opposed to National Australia Bank’s proposed A$13.3 billion bid for wealth manager AXA Asia Pacific.The ACCC has maintained its original rejection of what could have possible been the biggest deal in Australia’s financial services history.
The regulator argued that the takeover would skewer competition in the market for supply of retail investment platforms.
NAB proposed to onsell AXA’s fledging investment platform North to a smaller local wealth manager, IOOF, to alleviate the regulator’s original competition concerns.
NAB also promised to provide IOOF with financial support and technical support, and to channel business its way for three years, as on its own IOOF would lack the infrastructure needed to make North a competitive market force.
ACCC deputy chairman Peter Kell said that undertakings proposed by the bank and AXA APH to onsell IOOF did not provide sufficient certainty that the ACCC’s competition concerns will be addressed.
A spokesman for AXA SA said the French parent was disappointed with the ACCC findings but will review the decision more fully before making further comment.
AXA APH said in a statement that it had noted the decision.