Earlier this month, NAB informed the market it had reached new arrangements with Axa AP’s parent, Axa SA, over the proposed $4.6 billion offer for the French insurer’s Australian and New Zealand business.
The proposed takeover will include Axa AP’s advice businesses: ipac, Genesys, Axa Financial Planning and Charter Financial Planning.
Under the deal, NAB has been given the go ahead to use the Axa brand for a two-year period, with the bank also seeking, if possible, to keep the 50 per cent stake in AllianceBernstein Australia.
While NAB and Axa AP’s latest arrangement seems quite in-depth, the deal has yet to be given an official green light.
Despite weeks of deliberation, the Australian Competition and Consumer Commission (ACCC) has called for an extension before handing down its decision.
In what many may have deemed a cruel April Fools’ Day trick, the ACCC deferred its former proposed date for announcement of 1 April and pushed its decision out until no later than 22 April.
The ACCC’s deferral may leave room for AMP to re-enter the ring, with faint whispers ANZ may also be interested in becoming a suitor.
Murmurs within dealer groups suggest that if the NAB and Axa AP deal is given the go ahead, not much will immediately change. Many believe the merger will initially merely represent a change in ownership and if the structure and the culture remain, so will they.
Others consider staffing at an adviser level as the least of their concerns, with doubling up on a management and product level perhaps the first port of call if cuts are made.
A merger between two entities of similar structure would no doubt lead to a financial services ark-type structure. Two go in, though as the integration of divisions begins to eventuate, usually there is only one position available. At this stage, such a scenario is purely speculative.
However, despite waiting for the ACCC or any counteroffers from other interested parties, it would seem the waiting game will continue for some time.
