NAB tries to satisfy watchdog on its AXA bid

MELBOURNE: National Australia Bank is in discussions with takeover target AXA Asia Pacific Holdings (AXA APH) and the competition regulator over a possible divestment of AXA APH's North investment platform.

NAB says the discussions are preliminary and are being held with AXA APH, the Australian Competition and Consumer Commission and other interested third parties.

But the bank said yesterday that there was no assurance such a divestment of AXA APH's North Wealth.net investment platform would occur or that it would address the competition concerns previously raised by the ACCC.

The bank's statement comes three days after speculation emerged that NAB was in discussions with IOOF Holdings, Tower and Tower Australia Group over the sale of the North platform to help the bank gain ACCC approval for its A$13.29 billion ($16.4 billion) tilt.

Both Tower and Tower Australia denied they had been in talks with the bank while IOOF declined to comment.

NAB is continuing to pursue its options after the ACCC rejected its bid on April 19 because it felt competition and innovation would deteriorate if the companies combined their wealth platforms.

ACCC approval was one of the conditions for the deal, under which NAB would buy all of AXA APH, then divest the Asian businesses to Paris-based AXA SA.

The bank now has another five weeks to satisfy the regulator after AXA APH and parent AXA SA agreed on Tuesday to extend an exclusivity agreement to July 15.

Until then, none of the parties can terminate the agreement for the bank's failure to obtain competition clearance in Australia, NAB says.

NAB said yesterday it would keep the market informed of material developments over its response to the ACCC decision and in relation to its proposed acquisition of AXA APH.

The ACCC has yet to publish its public competition assessment over the bid.

The assessment will detail the competition issues but not necessarily indicate the regulator's future decision on the bid.

Meanwhile, AMP said last week it was yet to decide whether to submit a higher rival bid than the A$12.85 billion it previously offered.

It is also awaiting a decision by New Zealand's Commerce Commission, due on June 14, on whether it can acquire AXA APH's New Zealand assets.

NAB's shares fell over 3 per cent yesterday after passing the cut-off day for dividend payments. By the close, the stock was down 73c at A$24.36.

- AAP