Axa and NAB reach agreement on Axa APH

FRENCH insurance giant Axa and National Australia Bank (NAB) have finally struck a A$13.3bn ($12.3bn) deal on the future of Axa Asia-Pacific Holdings (APH). NAB will acquire 100% of Axa APH, retain its Australian and New Zealand businesses, and then sell to Axa 100% of the Asian businesses. NAB will end up paying A$4.6bn for the assets it wants and Axa, which owns 54% of Axa APH, will pay A$9.4bn for the Asian assets. Axa APH’s minority shareholders would be offered either A$6.43 cash per share they own, or 0.1745 NAB shares and A$1.59 cash per share. Today’s agreement cements a provisional accord between NAB and Axa APH reached in December, when the former topped rival Australian firm AMP’s A$12.9bn bid. Both offers were similarly structured, leaving the eight Asian businesses to Axa. Axa began negotiating with NAB last month after an exclusivity agreement with AMP expired.