News came last night that the Australian Competition and Consumer Commission has decided to oppose National Australia Bank Ltd’s
(ASX:NAB) bid for AXA Asia Pacific Holdings Ltd
(ASX:AXA) and clear AMP Ltd
(ASX:AMP) bid for the insurer.
The watchdog says it found that a merger between NAB and AXA would result in a substantial lessening of competition in the market for retail investment platforms for investors with complex investment needs.
However the ACCC found that an independent AXA or a merger between AMP and AXA would not have this effect.
The news, which came after the closing bell last night, has surprised financial markets and caused concern for the major banks ability to expand in the domestic market.
NAB says it will review the ACCC’s decision before responding, it is believed the bank is considering offloading assets in a move to try and have the decision reversed.
Meanwhile the decision opens the door for AMP to make a fresh takeover bid for AXA.
AMP CEO Craig Dunn says he welcomes the ACCC’s decision, saying that it is a great outcome for Australian consumers.
Mr Dunn says a merger between AMP and AXA’s Australian and New Zealand operations would see the creation of a fifth pillar in the critically important financial services sector.
NAB’s profit for the 12 months to September 30, 2009 came to $2.589 billion.
