Exclusivity now binds AMP/AXA merger

AMP’s acquisition of AXA Asia Pacific has taken another step forward, with the signing of merger transaction documents that including exclusivity arrangements precluding AXA AP from dealing with other parties.

The arrangements, released to the Australian Securities Exchange (ASX) yesterday, outline the rules of engagement for the merger process — with one of the key elements being the restrictions that apply to AXA AP and its representatives in Australia.

The exclusivity arrangements have been imposed against the background of AMP’s previous bid for AXA AP, which ended up being effectively ‘gazumped’ by National Australia Bank. However, on this occasion both parties have agreed to enter into immediate further discussion if a superior offer is made.

The announcement made to the ASX said that the two companies would shortly begin reciprocal confirmatory due diligence — a process likely to take about two weeks.

It pointed out that in addition to receiving shareholder and court approvals, the merger also remained subject to further regulatory approvals — including from the Federal Treasurer.

The announcement said it was expected the transaction would be put to AXA AP minority shareholders for approval by the end of the first quarter of next year.