NAB to top financial planning
(19 January 2010 – Australia) If National Australia Bank’s bid of A$13.3 billion for Axa Asia Pacific succeeds the group is set to become a market leader in the financial planning industry.
NAB and its wealth management arm, MLC, currently have an eight percent market share and if successful with the bid for Axa APH this could rise to a 15 percent share.
The bank, currently boasting relationships with 1389 planners, is having trouble convincing its shareholders of the benefits of buying the Australian and New Zealand operations of wealth manager Axa Asia Pacific.
After the announcement of the proposed deal was made, NAB’s share price dropped by 7 percent and has recently recovered to A$27.30.
MLC’s, chief executive officer, Steve Tucker, told The Australian newspaper that investors may take some time to get comfortable with the idea. Mr Tucker also insisted that it would benefit shareholders.
The deal is subject to Axa APH’s parent, Axa SA, agreeing to buy the companies Asian assets.
The Australian also reported that insiders suggested that if NAB also purchased Queensland-based PIS planning group its market share could reach 23 percent. NAB has continued to increase it presence in the market with the purchase of Aviva last year.
The possible success of NAB’s offer is still unclear due to an agreement that ends in February between Axa SA and AMP.
Research house Rainmaker found that five large operators control 69 percent of the market.
Head of research for Rainmaker, Alex Dunnin said that NAB’s purchase of Aviva will increase the top five concentration from 69 percent to 73 percent, however the market leader will still be BT/Westpac by 1 percent.
The bank, currently boasting relationships with 1389 planners, is having trouble convincing its shareholders of the benefits of buying the Australian and New Zealand operations of wealth manager Axa Asia Pacific.
After the announcement of the proposed deal was made, NAB’s share price dropped by 7 percent and has recently recovered to A$27.30.
MLC’s, chief executive officer, Steve Tucker, told The Australian newspaper that investors may take some time to get comfortable with the idea. Mr Tucker also insisted that it would benefit shareholders.
The deal is subject to Axa APH’s parent, Axa SA, agreeing to buy the companies Asian assets.
The Australian also reported that insiders suggested that if NAB also purchased Queensland-based PIS planning group its market share could reach 23 percent. NAB has continued to increase it presence in the market with the purchase of Aviva last year.
The possible success of NAB’s offer is still unclear due to an agreement that ends in February between Axa SA and AMP.
Research house Rainmaker found that five large operators control 69 percent of the market.
Head of research for Rainmaker, Alex Dunnin said that NAB’s purchase of Aviva will increase the top five concentration from 69 percent to 73 percent, however the market leader will still be BT/Westpac by 1 percent.
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