AMP-AXA merger sees changes at the top

Axa New Zealand chief executive Ralph Stewart.

The A$14 billion ($19 billion) merger between AMP and AXA Asia Pacific Holdings, which is effective from March 31, has led to changes at the top on both sides of the Tasman.

In Australia, AXA's chief financial officer, Geoff Roberts, will be appointed to the boards of AMP Life and National Mutual Life Assurance.

In New Zealand, AXA's chief executive, Ralph Stewart, will move on to what AXA said were "new personal challenges". AMP Financial Services managing director Jack Regan will head the merged business here.

Stewart said the merger represented a "significant opportunity for further growth".

"The next step for the New Zealand business is to grow our scale as quickly as possible so we can compete with the largest financial institutions in New Zealand."

The deal involves AMP taking 100 per cent of AXA Asia Pacific, merging its Australian and New Zealand businesses with those of AMP, and divesting AXA Asia Pacific's Asian businesses to France's AXA SA.

Last week, AXA Asia Pacific's minority shareholders voted in favour of the proposal.

AMP and AXA combined are expected to create stiff competition for Australia's big four banks - ANZ, Westpac, National Australia Bank and Commonwealth Bank of Australia - in the wealth management market.

Under the scheme, AXA Asia Pacific shareholders are being offered 0.73 AMP shares and a cash amount based on AMP's daily volume-weighted average share price during the 10 days after the effective date of thescheme.

AXA lodged copies of the AMP/AXA scheme of arrangement with the Australian Securities and Investments Commission yesterday and the company's shares were suspended from trading at the close of business.

The AMP ordinary shares that were issued to AXA Asia Pacific's minority shareholders as part payment are expected to start trading on a deferred settlement basis from today, and then on a normal settlement basis from March 31.

The AMP AXA deal is a sign of the times for the wealth management industry.

Ownership of Australasian fund manager Tyndall Investments has just passed from Australia's Suncorp-Metway to Japan's Nikko Asset Management following completion of a transaction announced last year.

Nikko AM, which has offices in Tokyo, Singapore, London, New York and Hong Kong, is also in the throes of buying Singapore's DBS Asset Management in a deal worth US$105 million ($141 million). Nikko AM's ultimate parent is Japan's Sumitomo Trust and Banking