National Australia Bank Ltd’s planned A$13.3 billion ($12.2 billion) takeover of asset manager Axa Asia Pacific Holdings Ltd was blocked a second time by the regulator, clearing the way for AMP Ltd to renew its challenge.
National Australia’s plan to overcome the competition watchdog’s objections by selling Axa Asia Pacific’s North investment platform, an online portal overseeing A$1.4 billion of funds, wasn’t enough, the Australian Competition & Consumer Commission said. It first barred the agreed deal on April 19.
“National Australia Bank may well be reaching the point where they walk away,” said Angus Gluskie, who manages about $300 million at White Funds Management Pty in Sydney including shares in the bank. “Further concessions are likely to reduce or eliminate the potential benefits from a transaction.”
Axa Asia Pacific shares tumbled the most in 18 months in Sydney trading on speculation any new bid from AMP, Australia’s second-largest asset manager, will be lower than its spurned December 14 offer. National Australia had its steepest gain in three months as concern eased that the bank will have to sell stock to fund the purchase, which some analysts had judged expensive.
Sydney-based AMP today reiterated that Axa Asia Pacific is attractive “on the right terms”. AMP is “pleased” with the regulator’s verdict, Amanda Wallace, a spokeswoman, said in an interview.
Trumped offer
Axa Asia Pacific fell 6.6 per cent to A$5.08, the biggest decline since March 6, 2009. National Australia rose 3.7 per cent to A$24.84, the largest gain since June 3. AMP was unchanged at A$5.04.
Under their proposals to buy Axa Asia Pacific, AMP and National Australia both planned to keep the target’s Australian and New Zealand businesses and sell the remaining eight Asia divisions to Axa SA, the French insurer that owns 54 per cent of Axa Asia Pacific.
AMP on December 14 bid A$12.9 billion for Axa Asia Pacific. That offer, which was approved by the regulator, was trumped three days later by Melbourne-based National Australia, the country’s fourth-largest lender. The two bidders squared off over a wealth manager that oversees A$78.4 billion, mostly in Australia.
