National Australia Bank Ltd. and AXA SA Buy AXA Asia Pacific Holdings for $13.3bn
National Australia Bank Ltd. and AXA SA are willing to pay $13.3 billion to acquire asset manager AXA Asia Pacific Holdings Ltd. It will be the second-biggest acquisition in Asia.
The nation's biggest money lender, National Australia Bank will pay A$4.6 billion for the Australian and New Zealand assets and AXA SA will make payment of A$9.4 billion for AXA Asia Pacific's Asian businesses. AXA SA owns 54% of AXA Asia Pacific.
National Australia Bank is quite sure of winning a three-month takeover battle against AMP Ltd.
Don Williams, Chief Investment Officer at Platypus Asset Management Ltd. said, "You've got the ACCC to get through, and you could get a leftfield result from that. Large mergers are tough things to integrate. It's another reason not to own NAB".
AXA Asia-Pacific will use about A$700 million of the proceeds from AXA SA to repay debt to the French company. After an exclusivity agreement with AMP expired, the French insurer began negotiating with National Australia Bank in February.
AXA Asia Pacific's minority shareholders can obtain A$6.43 in cash for each of their shares. The second option is it may receive a$1.59 in cash and 0.1745 of a National Australia Bank share for each of their shares.