The Australian Competition and Consumer Commission has delayed its ruling on the AMP offer for AXA Asia Pacific, effectively delaying any deal for just over three weeks.
The Commission had been due to show its hand with a ruling on the AMP’s $12.8 billion offer tomorrow.
The ACCC was then due to rule on the National Australia Bank’s $13.29 billion bid on April 22.
Around midday yesterday, media reports said the Commission still planned to make a statement on the AMP offer tomorrow.
Just over four hours later, in a statement after trading finished yesterday the ACC said:
"The Australian Competition and Consumer Commission has today deferred its decision on AMP Limited’s proposed acquisition of AXA Asia Pacific Holdings.
"The ACCC is continuing to receive relevant information and will make a decision as soon as all relevant information has been considered.
"It is anticipated the ACCC will make a decision no later than 22 April 2010."
There was no further detail.
Earlier in the day the Commission had indicate it was prepared to rule on the AMP offer tomorrow.
That was after AXA APH had requested a trading halt pending an announcement to the market over the status of contractual negotiations with its parent, Paris-based insurer AXA SA, and the NAB.
AXA APH requested the trading halt last until the start of trading today.
AXA APH’s and NAB’s shares last traded at $6.35 and $27.70 respectively.
NAB and AXA APH last week agreed to extend the deadline for finalising transaction documents for the bid to Monday.
In February, the Competition Commission said in a statement that the NAB’s bid presented deeper competition concerns than AMP’s bid.
"It appears to the ACCC that NAB’s proposed acquisition of AXA raises a higher level of concern then AMP’s proposed acquisition of AXA," the ACCC said in a statement of issues.
The Commission seems to have less worries about the AMP’s bid.
Under both bids AXA’s French parent will acquire AXA APH’s Asian assets, leaving either AMP or NAB with its Australian and New Zealand operations.
AXA SA owns 54% of AXA Asia Pacific, but doesn’t control the future of its Australian arm, unless the Commission says no to the NAB and yes to the AMP.
The AMP had an agreement with AXA SA in its bid, but refused to lift its offer when the NAB offered a higher price.
The AMP’s CEO, Craig Dunn has called the ACCC’s findings “a key factor” in whether he decides to make a counteroffer. The AMP said yesterday AXA AP remains an attractive option.
