AXA buy nice but not vital, says AMP

Photo / Getty Images

AMP says discussions with AXA Asia Pacific Holdings' French parent are continuing, but an acquisition of the wealth manager and insurer isn't critical to its future.

AMP says nothing has changed for Australia's second biggest superannuation manager after Melbourne-based AXA APH told the market it had been made aware of talks between AMP and Paris-based AXA SA.

"We have maintained a dialogue with the French ... on our interest in AXA APH," AMP spokeswoman Jane Anderson said.

AMP had no disclosure to make.

"While this [AXA APH] is an attractive possibility, it is not a 'must do'."

Chief financial officer Paul Leaming told investors in Asia last week that AMP would make only acquisitions that stood to accelerate its growth, create "sufficient" value for shareholders, and were within AMP board's risk appetite.

AXA APH's statement on Friday cautioned that discussions between AMP and AXA SA were "incomplete and may or may not lead to a transaction".

The French financial newspaper La Tribune d'Expansion on Thursday reported talks had resumed between the companies over the possibility of a third takeover proposal for AXA APH, 12 months after both companies tabled their first $11 billion tilt.

AMP and AXA SA's second $12.85 billion bid was rejected by AXA APH's board last December in favour of National Australia Bank's (NAB) $13.29 billion offer.

But NAB's offer was twice rebuffed by the Australian Competition and Consumer Commission (ACCC), and the bid was withdrawn in September.

AXA SA holds a 54 per cent stake in AXA APH, and all offers involved the French company taking AXA APH's high growth Asia businesses.

The scale of the merged business would make AMP the Australian market leader in risk insurance, retail superannuation and retirement income.

In New Zealand, it would become the market leader in the retail and corporate superannuation markets.

The ACCC indicated in April it did not have any competition concerns over an AMP takeover of AXA APH's Australasian units.

The New Zealand Commerce Commission gave its approval in June.

The New Zealand Overseas Investment Office must also approve the deal.

AMP's shares rose 2c to $5.37 and AXA APH's stock gained 3c to $5.64 on Friday.

- AAP