ACCC close to NAB AXA decision

The competition watchdog says it will make its final decision on Thursday over
whether National Australia Bank Ltd (NAB) and AXA Asia Pacific Holdings (AXA) have
done enough to satisfy it to allow their $13.3 billion merger to go ahead.
The Australian Competition and Consumer Commission (ACCC) confirmed it expects on
Thursday to announce its decision over undertakings offered by both parties in what
is the nation's second biggest financial services deal.
The ACCC previously said it anticipated making a final decision on the undertakings
by September 9 and on Wednesday an ACCC spokeswoman said that date had not changed.
The decision will follow the ACCC's consultation with market participants over
whether NAB's pledge to sell AXA APH's North wealth management platform to IOOF
Holdings Ltd would alleviate the regulator's competition concerns that led it to
block the bid in April.
The sale to IOOF would include the North brand, software licence, IP and staff.
If the undertakings are accepted and the bid successful, it would become Australia's
second biggest financial services takeover after Westpac's $16 billion takeover of
St George Bank in 2008.
IOOF managing director Chris Kelaher said in August that an acquisition of the North
platform would accelerate the company's earnings and be "a marriage made in heaven".
NAB's bid to acquire AXA was made last December and received approval from AXA's
board on condition that the relevant regulators would give it the green light.
NAB's all-cash offer price was $6.43 per share and on Wednesday AXA's shares
finished 15 per cent below that level.
AXA's shares fell 17 cents, or 3.03 per cent on the day, to $5.44 amid weakness
across financial stocks.
Brokers said AXA investors may have taken profits ahead of the ACCC's announcement.



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