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Axa and AMP team up to create Australia’s largest wealth manager

Axa has teamed up with Australian insurer AMP to acquire Axa Asia Pacific for £6bn (A$11bn).

Axa AP is currently 54 per cent owned by Axa. If plans were to go ahead, AMP would buy all the shares in Axa AP, sell the Asian operations to Axa for £4.3bn (A$7.7bn) and retain the group’s Australian and New Zealand units.

This would be equivalent to AXA selling its 54 per cent stake in Axa APH’s Australia & New Zealand business while acquiring the 46 per cent of Axa AP’s Asian operations that AXA does not own.

Axa has also launched a £1.8bn (€2bn) rights issue. The Axa Mutuelles, BNP Paribas and Schneider Electric are all exercising all of the preferential subscription rights attached to their shares. The remainder of the issue has been underwritten by a syndicate of banks.

Axa Management Board chairman Henri de Castries says: “This transaction would reinforce Axa’s growth profile by doubling its exposure to the Asian life and savings market and further optimize the corporate structure of the group.”

AMP chief executive officer, Craig Dunn says the move will “create a new force in Australian and New Zealand financial services, with financial advice at its heart.”

He says: “The Australian wealth management market remains highly attractive. Ageing demographics and bipartisan support for mandatory superannuation, along with expected strong economic growth, will see a highly efficient company operating in a high growth market.”

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  1. I saw what AMP did to Pearl, NPI and London life so this is bad news for AXa. For this reason i will probably avoid Axa now.

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