AXA Asia Pacific says talks between National Australia Bank, parent AXA SA and itself on a $13 billion takeover plan are at an advanced stage and could be wrapped up before or by next Monday.
That’s the day before the competition regulator is due to release its verdict on the first bid for AXAAP from the AMP Ltd.
AXA Asia updated the market yesterday in a short statement, but made no comment on the AMP offer or on the deadline.
The NAB agreed in December to buy AXA Asia Pacific for $13.3 billion, an offer than trumped a cheaper bid from the AMP.
The NAB said yesterday in a statement that it had agreed with AXA Asia Pacific to extend the terms deed for its bid to acquire AXA Asia Pacific until next Monday.
"The discussions to agree final transaction documents to implement the proposal between AXA APH, NAB and AXA SA are at an advanced stage," NAB said in a statement to the stock exchange yesterday.
"The proposal is subject to shareholder approval, and approval from Australian, Asian and New Zealand regulators, and other conditions."
Early this month, the competition regulator, The Australian Competition and Consumer Commission (ACCC), delayed a decision on two competing bids for AXA Asia Pacific Holdings.
The ACCC was due to decide by March 17 whether to allow the separate bids by National Australia Bank and the AMP.
The ACCC said a decision on the AMP bid would not be made until April 1 and the decision on the NAB proposal had been delayed until April 22.
That makes the extension until next Monday interesting. If there’s no agreement, the ACCC could decide it all the next day by revealing its attitude to the AMP bid and suggesting its stance as well on the NAB offer.
Because both offers are conditional on ACCC approval, the deal could fall over from the NAB’s point of view next Monday, but also from the AMP’s as well, if AXA indicates that it won’t accept an inferior offer.
That would then leave it up to the AMP to renegotiate a higher offer and its arrangement with AXA SA, the Paris-based parent.
The AMP has said the longer the bid process takes, the more flexibility it has to make a counterbid.
Both AMP and National Australia Bank’s proposals involved keeping the Australian and New Zealand units of AXA Asia Pacific and selling divisions in eight Asian nations to AXA SA.
AXAAP shares ended up 1c at $6.31, AMP shares eased 5c to $6.26 and NAB shares eased 19c to $26.71.
