April 20, 2010The
Australian Competition and Consumer Commission (ACCC) has decided to oppose National Australia Bank’s (NAB) proposed acquisition of AXA Asia Pacific Holdings, while clearing AMP’s proposed acquisition.
ACCC Chairman Graeme Samuel yesterday spoke out about the decision.
"At the heart of the ACCC's decisions are concerns about innovation, and as a consequence future rigorous and effective competition between retail investment platforms,” he says.
Following investigations on both proposals over the past four months, the ACCC reported a merger between NAB and AXA would result in "a substantial lessening of competition in the market for retail investment platforms for investors with complex investment needs".
On the other hand, the ACCC found an independent AXA or a merger between AMP and AXA would not have this effect, as it is not a significant competitor for retail investment platforms for investors with complex investment needs.
"The ACCC concluded that because AMP does not own its own wrap platform it is constrained in its ability to compete aggressively," Samuel adds.
