AMPs Exclusivity Agreement With AXA Ends

Post by Sharat on February 8, 2010 · Under Business News, Company News, Mergers & Acquistions, banking · Comment

Australian wealth manager AMP’s exclusivity agreement with French insurance giant AXA SA in the proposed acquisition of Australasian subsidiary AXA Asia Pacific holdings (APH), ceased to be effective at the weekend, implying that on Monday, investors will have a better idea of who will be buying the company.

The expiration of the agreement opens the door for National Australia bank, whose all cash and higher value bid trumped that of AMP’s, to begin negotiations with AXA SA.

NAB already looked to be the likely acquirer, after winning the backing of APH’s independent directors, an endorsement that the original bid failed to receive.

The Australian Competition and Consumer Commission (ACCC) is currently reviewing the regulatory issues regarding both bids, and will issue its findings to AMP on February 10th, whilst NAB will find out whether it has won regulatory approval on March 18th.

Analysts believe that APH is still extremely attractive to AMP, but the company would have to balance its desire for the target against the much bigger offer it would need to make, something AMP management have baulked at .

Under the terms of both bids, the either AMP or NAB would acquire all of APH, whilst simultaneously selling the APH’s Asian assets to AXA SA, leaving them with the Australia and New Zealand businesses.

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