National Australia Bank (NAB) has reached an agreement with French insurance group Axa SA to take over Axa Asia Pacific's (Axa AP) Australian and New Zealand business for $4.6 billion.

The takeover includes Axa AP's advice businesses - ipac, Genesys, Axa Financial Planning and Charter Financial Planning.

NAB will be able to use the Axa trademark for a period of two years to help with the transition.

The bank also intends to retain the 50 per cent stake in AllianceBernstein Australia, if it is able to reach a suitable arrangement.

NAB chief executive Cameron Clyne said he was pleased with the progress of the proposed acquisition.

"The proposal agreed today provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand," Clyne said yesterday.

"MLC and Axa Australia and New Zealand are among the most trusted financial services brands in Australasia and collectively hold more than $149 billion in funds under administration and management."

Axa AP chairman Rick Allert said: "We are pleased to have reached formal agreement with NAB and Axa SA as the next step in implementing the proposal."

The agreement included a no-shop clause, which means Axa AP cannot ask other interested parties, such as AMP, to submit a higher bid.

Axa AP will have to pay NAB a break fee of $35 million if the deal falls through.

As previously announced, Axa AP minority shareholders can choose to receive either cash of $6.43 per share or $1.59 in cash and 0.1745 NAB shares per Axa AP share.

The merger is still subject to approval by the Australian Competition and Consumer Commission (ACCC), which will announce its decision on 22 April, representing a slight delay from its previously nominated decision date of 1 April.

The ACCC said it was continuing to receive relevant information and would make a decision as soon as all relevant information had been considered.
 
AMP's bid was trumped by NAB's proposal in December, but AMP has not given up on the acquisition just yet.

AMP chief executive Craig Dunn recently reiterated that Axa remained attractive as an option to accelerate parts of the group's growth strategy.

Dunn said AMP would consider its position and wait for the ACCC to announce its ruling on NAB's offer, while it would maintain a "disciplined approach" to mergers and acquisitions.