AMP chair points to need for fifth pillar
AMP chairman Peter Mason has used AMP’s annual report to reinforce the company’s continued interest in acquiring AXA Asia Pacific’s Australia and New Zealand operations.
Mason said AMP believed Australians and New Zealanders deserved a strong, non-bank competitor in the wealth management sector.
“AMP is that competitor, and a merger with AXA would strengthen this position and create a non-bank fifth pillar in Australian financial services,” he said.
Mason added that while the AXA proposition still had a long way to run, many of AMP’s competitors had embarked on merger and acquisition (M&A) activity during the last financial year “supported by the Government’s bank guarantee”.
“While this guarantee was entirely necessary to protect Australia’s economic and financial stability, it has created unavoidable market distortions,” he said.
Mason said the AMP board and management team were very disciplined about M&A activity and would not overpay for assets.
AMP’s bid for AXA Asia Pacific lapsed earlier this month in the face of a counter offer by National Australia Bank that is currently the subject of scrutiny by the Australian Competition and Consumer Commission.
AUTHOR
Mike Taylor
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