AXA acquisition key to retail super crown
New analysis published by Citi Group has revealed the degree to which National Australia Bank's (NAB) acquisition of AXA Asia Pacific would change the shape of the retail superannuation market.
Citi Group analysts pointed out that the AXA Asia Pacific acquisition, if approved, would enable National Australia Bank and its wealth management arm, MLC, to "surpass AMP as the corporate group with the largest pool of retail superannuation funds under management (FUM).
"If AMP is successful in bidding for AXA, it may reclaim this title, however if NAB/MLC is successful, it will position itself with a much larger pool of FUM than AMP or the other major Australian banks," the Citi Group analysts said.
They said that if AMP or NAB/MLC were successful in acquiring AXA Asia Pacific, the result would be that the top five financial services groups would control the administration of 75 per cent of retail superannuation FUM via their marketed products.
The analysts claimed that this market dominance would rise to 78 per cent if badged products were also included.
The Citi Group analysis was published as the Australian Competition and Consumer Commission was continuing its deliberations into the NAB/MLC bid for AXA, and as AMP chief executive Craig Dunn was making clear his group had not abandoned its own bid for AXA.
While NAB announced it had in late January completed its initial due diligence on AXA Asia Pacific, Dunn used an address to financial planners to discuss the continuing consolidation occurring in the financial services industry and to make clear AMP's continuing agenda.
He said that, backed by its Board, AMP was prepared to give its acquisition "a red hot go". Dunn said that while the AXA acquisition was not necessarily "a strategic must do" it remained an attractive option.
"So right now we're considering our options on AXA," he said.
AUTHOR
Mike Taylor
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