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Banks (Finance)

National Australia Bank Secures Approval for AXA Acquisition in New Zealand

Strategic Insights

— 2 min read

The New Zealand government has granted approval for National Australia Bank's (NAB) acquisition of AXA Asia Pacific Holdings' (AXA APH) New Zealand assets, worth NZ$1.5 billion (US$283.85 million), in a move that satisfies the investment criteria set out under section 18 of the Overseas Investment Act 2005. The approval was granted over a month ago, on May 28, by the Overseas Investment Office (OIO), with the transaction still pending clearance from the Commerce Commission. Meanwhile, NAB remains in talks with the Australian Competition and Consumer Commission (ACCC) to address competition concerns related to its bid for AXA APH.

Key Takeaways:

  • The New Zealand government has granted approval for NAB's acquisition of AXA APH's New Zealand assets, worth NZ$1.5 billion (US$283.85 million).
  • The approval was granted over a month ago, on May 28, by the Overseas Investment Office (OIO).
  • NAB still needs to obtain clearance from the Commerce Commission for its NZ$13.3 billion bid for AXA APH.
  • The ACCC rejected NAB's bid on April 19, citing competition concerns related to retail investment platforms.
  • NAB has until July 15 to divest or re-arrange assets to satisfy the regulator's competition concerns before AXA APH and AXA SA can terminate the agreement.
  • AMP Ltd. has cleared its alternative proposal to acquire AXA APH's assets in Australia and New Zealand, with a NZ$12.85 billion bid that did not substantially lessen competition in the affected markets.
  • NAB has not yet made an application to the Commerce Commission for clearance of its bid.

Statistics:

  • NZ$1.5 billion: The value of AXA APH's New Zealand assets being acquired by NAB.
  • May 28: The date when the Overseas Investment Office granted approval for NAB's acquisition of AXA APH's New Zealand assets.
  • NZ$13.3 billion: The value of NAB's bid for AXA APH.
  • April 19: The date when the ACCC rejected NAB's bid for AXA APH.
  • July 15: The deadline for NAB to divest or re-arrange assets to satisfy the regulator's competition concerns before AXA APH and AXA SA can terminate the agreement.
  • US$283.85 million: The value of AXA APH's New Zealand assets in USD.
  • $12.85 billion: The value of AMP Ltd.'s alternative proposal to acquire AXA APH's assets in Australia and New Zealand.

Sources:

  • "National Australia Bank granted approval for AXA acquisition in New Zealand" by Asia Pulse, July 2.
  • "National Australia Bank still in talks with ACCC over AXA bid" by Asia Pulse, June 25.
  • "AMP clears bid for AXA's Australian and New Zealand assets" by Asia Pulse, June 21.
  • "National Australia Bank's AXA bid rejected by ACCC" by Asia Pulse, April 19.

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