Australian Watchdog Postpones NAB, AMP Decision

Vanessa Doctor

14 March 2010

The Australian Competition and Consumer Commission has decided to delay its decision over the two takeover bids for AXA Asia Pacific, citing the need for more information.

The ACCC had intended to release its report on 17 March but put it off to 1 April for AMP Ltd and 22 April for National Australia Bank.

NAB's A$13.2 billion ($12 billion) offer for the wealth management and protection firm already has an endorsement from the latter's independent directors, but AMP has remained in the game and is still keen on buying the unit. The regulator said in a statement that the delay would allow it to consider further information requested from the merger parties.

The ACCC had asked both parties to explain how their respective offers for AXA would impact on Australia's wealth management sector, especially as the big four banks are appearing to now have a more dominant position in the industry. This adds to the watchdog's concerns over AMP's potential to be a takeover target should it not succeed and NAB's ability to maintain its banking and wealth management businesses if it does gain control of AXA, among others.

"It's an important issue that will have a significant impact on the financial services landscape; and AMP understands the need for the ACCC to take a thorough and detailed approach to both proposals," said a spokesperson for AMP in an emailed statement.

The common factor in both bids is that they both propose to keep AXA's Australian and New Zealand operations and let go of its Asia Pacific business to French parent AXA SA. The decision to delay springs from the regulator's rather aggressive approach on merger and acquisition activities of late, favouring the capacity of regional banks to compete with larger international rivals.