ACCC decision a blow to NAB
(21 April 2010 – Australia) The Australian Competition and Consumer Commission (ACCC) has opposed National Australia Bank’s proposed takeover of AXA Asia Pacific, however has approved a rival bid from AMP.
NAB offered up A$14 billion for AXA Asia Pacific, while AMP was offering A$13.1 billion.
The ACCC said, after a four month review, it found that a merger between NAB and AXA would result in a substantial lessening of competition in the market for the retail investment platforms for investors with complex investment needs.
However, the ACCC also said that it found that an independent AXA or a merger between AXA and AMP would not have this effect.
National Australia Bank has kept tight lipped about the decision, saying that at this stage they are not ruling out any options.
The bank has six weeks to see if it can come up with a solution, such as divesting a wrap platform, a senior adviser for the NAB-AXA deal said.
The adviser also added that until National Australia Bank officially says it is walking away, the outcome is not 100 percent certain.
The ACCC chairman, Graeme Samuel, said that the decision to knock back NAB’s bid was based on the bank’s current involvement in retail funds through its ownership of MLC, Aviva and the recently purchased JBWere business.
AMP’s chief executive officer, Craig Dunn, said that he welcomed the ACCC’s findings.
Mr Dunn added that a merger of AMP and AXA AP’s Australian and New Zealand operations would see the creation of a ‘fifth pillar’ in the critically important financial sector.
Amp has said that it believes it can put forward a proposal that is financially disciplined and will create value for its shareholders, and which the independent directors of AXA AP would be able to recommend to their minority shareholders.
The ACCC said, after a four month review, it found that a merger between NAB and AXA would result in a substantial lessening of competition in the market for the retail investment platforms for investors with complex investment needs.
However, the ACCC also said that it found that an independent AXA or a merger between AXA and AMP would not have this effect.
National Australia Bank has kept tight lipped about the decision, saying that at this stage they are not ruling out any options.
The bank has six weeks to see if it can come up with a solution, such as divesting a wrap platform, a senior adviser for the NAB-AXA deal said.
The adviser also added that until National Australia Bank officially says it is walking away, the outcome is not 100 percent certain.
The ACCC chairman, Graeme Samuel, said that the decision to knock back NAB’s bid was based on the bank’s current involvement in retail funds through its ownership of MLC, Aviva and the recently purchased JBWere business.
AMP’s chief executive officer, Craig Dunn, said that he welcomed the ACCC’s findings.
Mr Dunn added that a merger of AMP and AXA AP’s Australian and New Zealand operations would see the creation of a ‘fifth pillar’ in the critically important financial sector.
Amp has said that it believes it can put forward a proposal that is financially disciplined and will create value for its shareholders, and which the independent directors of AXA AP would be able to recommend to their minority shareholders.
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