The ACCC also stated that an independent Axa or a merger between AMP and Axa would not have this effect, with the commission concluding that because AMP does not own its own wrap platform it is constrained in its ability to compete aggressively.
In September, the ACCC blocked NAB’s second bid to buy Axa’s Australian and New Zealand divisions on the same grounds. Meanwhile, financial services firm IOOF was also unsuccessful in its bid for Axa’s North investment platform in October.
In mid-November, AMP made a new bid for Axa AP of at least $6.43 per share under a new scheme of arrangement. The offer was higher than AMP’s previous bid at the end of 2009, which valued Axa at about $6.22 a share, based on the share price of AMP at the time. The bid was for 100 per cent of Axa AP, but also included the divestment of the Asian business to Axa AP’s French parent, Axa SA.
By 30 November, AMP, Axa AP and Axa SA signed binding merger transaction documents, after the completion of due diligence by AMP, bringing the successful merger of AMP with the Australian and New Zealand business of Axa AP a step closer to completion.
At present, the $14 billion transaction is still subject to approval from shareholders, the courts and federal Treasurer Wayne Swan. Axa AP shareholders are expected to vote on the proposed merger in the first quarter of 2011.
