New Zealand Competition Regulator Clears AMP Acquisition Of AXA Asia Pacific Holdings

Post by Sharat on June 21, 2010 · Under Business News, Company News, Mergers & Acquistions, banking · Comment

AMP the Australian wealth manager which is seeking to acquire AXA Asia Pacific Holdings (APH) received a boost to its bid, after New Zealand’s competition regulator bestowed its blessing upon the proposed deal.

The decision to approve the acquisition means that AMP is now in a better position should it decide it wants to renew its bid to acquire APH, after the rival bid initiated by NAB failed to receive the Australian competition regulators blessing.

The New Zealand Commerce Commission chairman Mark Berry justifying its decision said the acquisition of APH by AMP would not substantially reduce competition. AMP said it welcomed the findings of the Commission.

“A merger between AMP and AXA Asia Pacific’s Australian and New Zealand businesses would create a fifth pillar in the critically important financial services sector, creating a stronger wealth manager to better serve the Australian and New Zealand communities. A merger would also offer both AMP and AXA Asia Pacific shareholders the opportunity to benefit from the long term growth potential of the combined group.” AMP said in a statement.

In April the Australian competition said that it would not give its approval for rival bidder NAB to acquire APH, citing that such a merger would reduce competition in the retail investment markets.

The ACCC said it wouldn’t oppose AMP’s proposal, which was rejected by the target’s independent directors in December in favour of the higher NAB offer.

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