ACCC holds key to NAB acquisition of AXA

The National Australia Bank (NAB) and AXA Asia Pacific’s parent company AXA may have reached an agreement about the fine details of branding, but the ultimate fate of the acquisition deal remains in the hands of the Australian Competition and Consumer Commission (ACCC).

What is more, the competition regulator has inextricably linked its consideration of NAB’s proposed acquisition of AXA Asia Pacific to its assessment of AMP Limited’s earlier takeover bid, indicating that it will be handing down its findings on both matters on 22 April.

The ACCC had defined 22 April as its reporting date with respect to the NAB bid and late yesterday deferred its decision on the AMP bid, originally due on or before 1 April, to the later date.

While NAB is regarded as having taken the front running with its bid for AXA Asia Pacific’s Australia and New Zealand businesses, enough issues with respect to platform ownership and other issues of market dominance have been raised with the ACCC to place NAB’s strategy in doubt. This has prompted AMP Limited to restate its interest.

Even though the fate of the bid is ultimately dependent on the position adopted by the ACCC, NAB and the AXA parent have moved through the standard due diligence and acquisition phases — and it has been announced that NAB would acquire AXA APH’s Australian and New Zealand wealth management and insurance businesses.

This would include the advice businesses of ipac, Genesys, AXA Financial Planning and Charter Financial Planning, with NAB being able to use the AXA trademark in Australia and New Zealand for a period of two years to assist with the transition.

The announcement said that, subject to agreeing new joint venture arrangements, NAB would retain AXA AP’s 50 per cent interest in the AllianceBernstein Australia joint venture.