Opinion
NAB might squeeze more from AXA SA
The sudden emergence of Prudential as a buyer of the AIG life insurance business in Asia could have ramifications for the $13 billion Axa Asia Pacific Holdings takeover offer from National Australia Bank.
Edited by Jamie Freed and Sarah ThompsonThe sudden emergence of Prudential as a buyer of the AIG life insurance business in Asia could have ramifications for the $13 billion Axa Asia Pacific Holdings takeover offer from National Australia Bank .
NAB wants to offload the Asian operations of Axa APH to the French parent AXA SA.
The two have been negotiating for some time and it was generally accepted that the French would do a deal.
However, if the Financial Times is right and the Pru is knocking on the door of AIG in New York offering to pay $US30 billion ($33.5 billion) for its wholly owned Asia subsidiary AIA Group then the dynamics of the NAB bid could change.
AIA Group was slated for an initial public offering this quarter to raise about $US20 billion.
If the price is going up by 50 per cent in a trade sale then maybe NAB will have an opportunity to squeeze a bit more cash out of the French.
After all, the Axa APH business in Asia has a strong position in Hong Kong and is on a steep growth path in India and China.
AXA SA had agreed to pay $9.6 billion for the Asian operations of Axa APH in a deal with AMP that has lapsed.
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