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New Zealand Commerce Commission Clears AMP's Acquisition Of AXA's Australian And New Zealand Businesses - Update

(RTTNews) - The New Zealand Commerce Commission has granted Sunday the clearance for the acquisition of the Australian and New Zealand operations of AXA Asia Pacific Holdings Ltd. (AXA.AX) by Australian insurer AMP Ltd. (AMLTY.PK, AMP.AX).

The Commission noted that it was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any of the affected markets. The Commission considers that competition from existing participants in the affected markets would be sufficient to constrain the merged AMP and AXA.

The commission considered the impact of the acquisition on each of the national markets for the provision of wealth protection products and services, retail funds management products and services, wholesale funds management products and services, and the financial planning and advisory services.

On April 19, the Australian Competition and Consumer Commission (ACCC) announced it would not oppose AMP's proposed acquisition of AXA Asia Pacific Holdings, but would oppose the proposed acquisition of AXA by National Australia Bank Ltd.

In December 2009, National Australia Bank announced a counter offer to acquire the Australian and New Zealand businesses of AXA Asia Pacific Holdings (AXA AP), which AXA recommended to its shareholders.

According to AMP's sweetened acquisition offer of A$6.9 billion in December 2009, the proposed acquisition involves only the Australian and New Zealand operations of AXA Asia Pacific. Following the closure of the proposed transaction, the Paris-based parent company AXA SA (AXAHY.PK) would acquire AXA Asia Pacific's Asian business and all of its assets and business, outside Australia and New Zealand, for A$9.6 billion including A$501 million of debt.

AXA Asia Pacific is a member of the global AXA Group, one of the largest financial services groups in the world. AXA Asia Pacific is responsible for the AXA Group's life insurance and wealth management businesses in the Asia Pacific region, with operations in Hong Kong SAR, China, Singapore, Indonesia, Philippines, Thailand, India, Malaysia, Australia and New Zealand.

AMP is the ultimate parent company of the AMP group of companies. AMP has business operations in Australia and New Zealand and is a publicly listed wealth management and protection company, with its shares being listed on the Australian and New Zealand Stock Exchanges. AMP Life Ltd. has over 73,000 New Zealand shareholders and over 330,000 customers in New Zealand.

AMLTY.PK closed Friday's regular trading session at $19.30, up $0.15 or 0.78% on a volume of 1,477 shares.

Meanwhile, AMP.AX is currently trading in Monday's trading session on the Australian Securities Exchange at A$5.68, up A$0.07 or 1.25% on a volume of 1.59 million shares, and AXA.AX is currently at A$5.75, up A$0.03 or 0.52% on a volume of 0.61 million shares.