National Australia Bank Ltd scrapped a A$13.3 billion ($12.4 billion) bid for Axa Asia Pacific Holdings Ltd after the regulator blocked the deal, paving the way for rival AMP Ltd to revive its offer.
“Continuing with this agreement is not in the best interests of shareholders,” National Australia Bank Chief Executive Officer Cameron Clyne said in a statement today. The competition watchdog blocked the takeover on September 9.
Clyne’s decision not to challenge the verdict, or even seek a compromise, puts AMP in a position to win the 10-month battle. AMP, whose A$12.9 billion offer in December was spurned by Axa Asia Pacific, said it’s “considering its position” after National Australia Bank stepped aside.
“As long as AMP remains financially disciplined in any revised offer, this deal will be accretive beyond the first year,” Arjan van Veen, an analyst at Credit Suisse Group AG in Sydney, said before the announcement. “Within wealth management, AMP would almost double its advisor base overnight.”
Axa Asia Pacific, a wealth manager with A$78.4 billion of assets, “remains strategically attractive,” Jane Anderson, a spokeswoman for Sydney-based AMP, said by telephone. AMP’s rejected bid has been cleared by the regulator.
