THE competition regulator has merged its probes into the rival takeover proposals by AMP and National Australia Bank for AXA Asia Pacific into a wide-ranging investigation that could decide the shape of a ''fifth pillar'' in the financial services industry.
Having indicated that it would release its separate ruling yesterday on AMP's now-lapsed $4.4 billion offer for the Australasian operations of AXA AP, the Australian Competition and Consumer Commission chose instead to issue a comprehensive judgment next month.
This will take in the effects of NAB's agreed $4.6 billion bid for the same businesses - an offer that trumped AMP's earlier proposal.
The scope of the regulator's concern about the increasing consolidation of the wealth management market - where the big four banks now dominate through their ownership of MLC, Colonial First State, BT and ING - was underlined by its call for comments on the likely demise of AXA AP.
In particular, the ACCC highlighted four key areas:
■ Whether AMP would remain an effective competitor to the major banks if its bid is not revived and doesn't get over the line.
■ The likelihood of the Sydney-based company becoming a takeover target if it doesn't acquire AXA AP.
■ Whether AXA AP could continue to operate as a stand-alone company if both bids fail.
■ What would be the effect of an AMP/AXA merger given that it could create a ''fifth pillar'' and an effective rival to the major banks who are protected from takeovers by the existing ''four pillars'' policy.
In a statement of issues outlining its more comprehensive inquiry now due for release on March 17, the ACCC highlighted the control over retail investment platforms and financial planning services as two major areas of concern.
As well as seeking responses from concerned parties on those issues, the ACCC has also raised questions about NAB's ability to cross-subsidise its banking and wealth management if it seized control of AXA, and the use of bank branches by customers seeking financial advice.
The regulator has put a deadline for responses by February 26.
Yesterday's statement came as NAB continued talks with AXA AP's major shareholder, the French group AXA SA, to secure its support for the bank's bid that would see the latter acquire the Australian fund manager's Asian operations for $9.6 billion.
NAB is looking to have that deal well in place before the ACCC's ruling next month.
