AXA submissions closed

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Submissions to the competition watchdog over National Australia Bank's proposed A$13.3 billion takeover of AXA Asia Pacific Holdings closed last night.

The Australian Competition and Consumer Commission is conducting market consultations over NAB's proposed bid for AXA APH.

If successful, it would be Australia's second biggest financial services takeover after Westpac's A$16 billion takeover of St George Bank in 2008.

The commission wrote to market participants on August 9 requesting views on whether NAB's pledge to sell AXA APH's North wealth management platform to IOOF Holdings would alleviate the regulator's competition concerns that led it in April to block the bid.

The sale will exclude any transfer of North products to IOOF, leaving IOOF to administer these products for the duration of a three-year platform administration services agreement.

NAB would retain the investment products and funds under management and continue to fund planned enhancements of the North platform which hadn't been completed by the time of the sale.

In its August 9 letter, the commission asked participants a range of questions, including if the North sale would be enough to provide strong competition, or if other assets, services, and licences should also be sold.

Platinum Asset Management's managing director Kerr Neilson has said the trend towards consolidating distribution platforms used by financial planners had reduced choice.

"The resulting rise in profitability of platforms has more to do with market dominance than increased efficiency or benefit to the public," he said last week.

A final decision by the commission is expected around September 9 depending on the issues raised during the consultation process.

- AAP