Three days ahead of its 22 April deadline, the competition watchdog moved to block what many thought was the industry’s worst-kept secret.
In public and some private circles, the pairing of the two financial services firms was considered a done deal.
One industry association chief was even heard giving the deal the green light well before the folk at the ACCC had moved for their extension.
Internal mutterings within NAB also suggested the ink was simply drying on the deal, with movement within the banking and wealth giant to accommodate Axa AP close to full swing.
Though it seems if NAB did conduct any nesting for Axa AP, it was perhaps all in vain.
In its decision, the ACCC stated innovation and effective competition between the groups’ retail investment platforms as one of its major concerns.
As part of its review of the proposed NAB and Axa deal, the ACCC said it had conducted a thorough investigation, including scrutinising a number of internal company documents from the merger parties and their competitors.
While the ACCC found that a merger between NAB and Axa would result in a substantial lessening of competition in the market for its retail investment platform concerns, an independent Axa or a merger between AMP and Axa would not create such concerns.
“The ACCC concluded that because AMP does not own its own wrap platform it is constrained in its ability to compete aggressively,” ACCC chairman Graeme Samuel said.
Commenting on the decision, AMP chief executive Craig Dunn said: “We have always believed that a combined AMP-Axa AP group would provide an even stronger, non-bank competitor in financial services that Australian consumers deserve.”
As of writing, AMP was yet to announce a new bid for the Australian and New Zealand businesses of Axa AP.
Though if Dunn’s comments are any indication, it would seem AMP will do all it can to secure Axa AP.
It may well be AMP’s opportunity to end the ‘always a bridesmaid, never a bride’ taunt when it comes to the wealth giant and NAB. Though, at this point neither NAB or AMP are out of the race for Axa AP.
Unconfirmed rumours suggest NAB has pipped the wealth giant on another deal, namely Aviva.
Though, if AMP wished to enter a new bid for Axa AP it would need to better its previous bid for the company’s shareholders to even consider a deal.
In November 2009, AMP and France-based insurer Axa SA launched an $11 billion bid to acquire Axa AP.
If AMP succeeded in winning over Axa AP shareholders it would create an interesting dynamic for the financial services sector. AMP would potentially be the unofficial fifth element amid the big four.
The addition of Axa’s platform and product offering would also place AMP at a serious competitive advantage.
Not only does AMP have the strength of its own brand and solid position within the insurance market, it has the potential to push past privately-owned dealer group Professional Investment Services as the country’s largest financial services firm in adviser numbers and funds under advice.
Only time will tell as to whether AMP will finally walk down the aisle in the merger stakes or if NAB will swoop at the last minute.
