AMP bid could merge big KiwiSavers

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Two of New Zealand's largest KiwiSaver providers could become one under a A$13.3 billion ($17 billion) takeover offer.

Insurance and wealth manager AMP yesterday made a new bid to buy AXA Asia Pacific Holdings together with French insurance and wealth giant AXA SA.

The deal would see AXA SA getting the Asia part of the business while AMP would pick up the New Zealand and Australian AXA business.

AMP chief executive Craig Dunn said the combined company would hold the number one position in Australia for risk insurance, retail superannuation and retirement income, and would be the biggest corporate superannuation provider in New Zealand.

"AMP and AXA APH are natural partners to build a company that would have the scale and distribution to provide greater competition to the big banks in the wealth management market," he said.

According to Morningstar figures AMP had $822.5 million of KiwiSaver investments as of September 30 while AXA had $522.4 million - combined they would have the third largest assets under management after ANZ-owned ING (now OnePath) and ASB.

AMP said it had already received approval for the merger from the Australian and New Zealand regulators.

Under the scheme of arrangement proposal, AXA APH minority shareholders would receive at least A$6.43 per share in value from AMP, equalling National Australia Bank's failed offer price.

The offer price is an 11 per cent premium to AXA APH's trading price of A$5.78 before it went into a trading halt yesterday. AXA APH shares closed up 39c at A$6.17 yesterday while AMP's shares closed up 12c at A$5.45.