NAB given more time for its AXA bid
AXA Asia Pacific, and its parent AXA SA, have agreed to give National Australia Bank until July 15 to convince the Australian regulator its acquisition of the trans-Tasman wealth management businesses will not hinder competition.
Wednesday, June 2nd 2010, 5:17AM
NAB and AXA have agreed to extend the framework deed, under which the bank has the box seat in buying AXA's Australian and New Zealand businesses for A$13.3 billion, until the deadline set by the Australian Competition and Consumer Commission (ACCC) for the bank to convince the regulator why a sale should go ahead.
The ACCC turned down the NAB bid, saying it would lessen competition in the wealth management industry due to NAB's retail investment platform, something that would not be a problem under the rival bid from AMP.
Last December, NAB offered AXA AP investors either A$6.43 per share in cash, or $1.59 and 0.1745 of a NAB share per AXA AP share, trumping AMP's bid at A$6.22 a share. Under both deals, AXA SA, the French parent which owns 54% of the Asia Pacific business, would then buy back AXA AP's Asian business.
Since then, AMP was granted approval to proceed with its bid by the ACCC, and put in a submission to get clearance by New Zealand's Commerce Commission, which is due in two weeks.
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