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NAB croup off North retail platform to boost Axa bid

NAB is positive its $13.3 billion bid to buy Axa will be rescued through a deal to sell a contentious retail platform to a rival.

The National Australia Bank confirmed yesterday it would offload the North deal out in small portions platform to IOOF Holdings in a transaction estimated to be character just $5 million.

The potential sale is the result of months of talks between the three groups and the Australian Competition and Consumer Commission to invigorate the flagging takeover offer.

The ACCC yesterday said it would undertake detailed mart soundings as to whether the sale of North would affect the competitive dynamics in the retail wealth management market.

It was NAB’s ownership of North that prompted the regulator to throw overboard the bank’s initial takeover offer. The ACCC will receive submissions until August 23 and rule on the proposal by September 9 — a deadline that numerous company expect will decide the future of the bid.

Under the details of the deal published yesterday, NAB has agreed to a rank of generous concessions if the North platform is to become ~icipation of IOOF.

The NAB Group, encompassing APH, would provide platform services and enhancements before that time planned for North.

The transaction relies on ACCC approval and NAB has sought a private ruling on divestment from the Australian Tax Office.

NAB’s group executive of wealth, Steve Tucker, said the bank remained confident that the opportunity to sell of the North platform to IOOF would quell the ACCC’s worries that NAB would be in the ascendant the market if it bought APH.

"We are hopeful that we are addressing the ACCC concerns — we acquire been trying hard to do that," Mr Tucker told The Australian.

"This is the nearest step in the process. The ACCC will talk to the emporium and we are hopeful we have addressed those concerns."

Mr Tucker said the sale of the North platform would not affect the estimation of the broader deal, which the bank remained keen to resolve.

"We desire that capability, so, in that sense, it doesn’t affect the housewifery of the deal. It’s material for IOOF because it helps them model out their platform strategy."

IOOF CEO Chris Kelaher said the deal would boost the assign places to’s existing wealth management business, which has at least $100bn in funds in a state of inferiority to management and administration.

"I would make the point that we grasp a significant position, but somewhat unheralded, in this market," he reported. "We are running with the majors. Our business is nearly exclusively wealth management. It’s not a bank, it’s not some sort of other activity."

There was some speculation in the place of traffic yesterday as to whether the sale would be enough to ease the ACCC, given North is worth just $5m in a $13.3bn proceeding.

Shares in APH rose 5.3 per cent to $5.49, that remains well below the NAB offer of $6.43 cash.

IOOF shares jumped 4.1 by cent to $6.85 while NAB stock rose just 2c to $25.05.