AMP says AXA deal remains attractive
AMP Limited (AMP) CEO, Craig Dunn, said at the insurer’s Annual General Meeting this morning that the proposed merger with AXA Asia Pacific (AXA) remains strategically attractive and would accelerate AMP’s growth strategy further.
Mr Dunn said he transaction still has some way to go, and the company’s immediate focus is to work through the relevant regulatory matters.
He also welcomed the Australian Competition and Consumer Commission’s decision that competition in the sector would be best served by the proposal.
”While M&A can provide a useful means to accelerate our growth strategy, we don’t see it as a strategic necessity,” Mr Dunn said.
”Our primary focus is to grow through a series of change initiatives to revitalize AMP, with new and more competitive products and funds, new services and new ways to do business with us.”
NAB launched a rival bid for all of the assets in AXA, which was knocked back by the ACCC last month.
AMP chairman, Peter Mason, said at the AGM today the company believes it can put forward a proposal that is both financially disciplined and able to create value for shareholders.
“M&A activity takes both patience and perseverance to ensure that real value is created for all shareholders,” Mr Mason said.
”This is not something that we will rush.”
As at 1045 AEST, AMP shares were up 13c to $5.97, while AXA APH shares were up 7c to $6.06.
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