Australia's fourth-biggest bank by market capitalisation, National Austrlia Bank Ltd. (NAB), has reached an agreement with Paris-based insurance and asset management company Axa SA to buy the latter's subsidiary AXA Asia Pacific Holding Ltds (Axa APH) for A$13.2 billion.
As per the deal, NAB would then keep Axa APH's Australian and New Zealand wealth management and insurance businesses for A$4.6 billion, while Axa SA would buy back the Asian businesses for A$9.4 billion, out of which the A$700 million Australian and New Zealand businesses debt to Axa would be repaid.
The buyout will be based on a consideration of either A$6.43 a share in cash or a combination of 0.1745 of a NAB share and A$1.59 cash, valued at A$6.42 based on NAB's closing price of $6.43 per share on Tuesday, the bank said in a statement.
Axa SA, owns 53.9 per cent of Axa APH. During December 2009, NAB approached Axa SA to acquire all the shares of Axa APH. (See: NAB to acquire AXA Asia Pacific's Aussie, NZ units for A$4.6 billion)
Earlier, AMP Ltd, Australia's second-largest asset manager bid for Axa APH for A$12.9 billion (See: AMP-Axa SA sweeten bid for Axa Asia Pacific Holdings to end stalemate)
According to experts, the deal will propel NAB to a clear market-leading position in the life-insurance and wealth-management industries in those countries and give the bank the largest network of financial advisers in Australia.