NAB moves on AXA
The National Australia Bank has agreed on terms with AXA Asia Pacific for NAB to acquire AXA’s Australia and New Zealand businesses.
AXA is recommending to shareholders the acquisition be approved.
The NAB move effectively stymies the bid launched by AMP.
It is expected that the transaction, which will hand NAB substantial market dominance, will be closely examined by the Australian Competition and Consumer Commission.
Update: The deal values AXA’s Australian and New Zealand businesses at $4,610 million. The proposal will see AXA Asia Pacific (AP) shareholders receive $6.43 per share in cash, or $1.59 and 0.1745 NAB shares for each AXA AP share.
In addition AXA AP shareholders will receive up to 9.25 cents dividend for their AXA AP shares in relation to the second half 2009 results, NAB’s statement to the Australian Securities Exchange said.
The proposal is subject to France’s AXA SA acquiring the Asian businesses of AXA Asia Pacific.
In confirming the move NAB managing director and chief executive Cameron Clyne said it was a “transformational bid” for the company.
MLC chief executive Steve Tucker said it was clear that the result of current industry reviews, in particular the Cooper Review of superannuation, will result in advantages for scaled players in the Australian market.
NAB estimates that under the deal its advisory force would account for 20 per cent of all Australian financial planners, with the second largest group sitting under rival bidder AMP at 10 per cent.
Under the acquisition NAB would pick up advice brands ipac, Genesys, AXA Financial Planning and Charter Financial Planning, as well as a 50 per cent stake in asset management company AllianceBernstein Australia.
The businesses would be transitioned to the MLC brand in Australia and BNZ in New Zealand, NAB’s statement to the ASX said.
MLC’s Tucker said the acquisition would double the group’s network of aligned advisers, handing them the leading market share position in retail super, retirement income, managed funds and insurance.
The proposed deal was flagged in a statement to media half an hour before any official documentation appeared on the Australian Securities Exchange. A teleconference confirming the details of the deal was also commenced well in advance of broader shareholder notification.
- Lucinda Beaman
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