3rd UPDATE: Australia's ACCC More Concerned By NAB Buyout Of AXA APH

SYDNEY--Australia's competition regulator Wednesday indicated it is more concerned by the impact of National Australia Bank Ltd.'s (NAB.AU) proposed $11.68 billion buyout of wealth protection firm AXA Asia Pacific Holdings Ltd. (AXA.AU) than it is by a rival bid from wealth manager AMP Ltd. (AMP.AU).

The two financial services heavyweights are locked in a battle for AXA Asia Pacific, a unit of French insurer AXA SA (AXA) that's controlled by independent directors. NAB in December trumped AMP's revised cash-and-share offer with a bid that gives all minority shareholders the option of trading each of their shares for A$6.43 ($5.64) cash.

The Australian Competition and Consumer Commission noted a NAB takeover of AXA Asia Pacific "raises a higher level of concern," over concentration of retail investment platforms that are used to distribute financial products and could also make it more difficult for regional banks to compete.

The regulator said a takeover by either party would concentrate the market for financial planning and advice and potentially hurt competition, but is unlikely to pose competitive concerns in pension or life-insurance markets.

It also will consider how likely it is for a stand-alone AMP to remain an effective competitor or become a takeover target itself, or if it could become a "fifth-pillar" in financial services alongside the four major Australian banks if its bid succeeds.

A spokeswoman for AMP said the firm is "reviewing" the ACCC's statement. A spokesman for NAB said the bank is "having a look at it" and a spokeswoman for AXA Asia Pacific didn't return calls.

The ACCC expects to take up to five more weeks to decide on whether it would allow either of the deals to proceed.

After winning the endorsement of the target firm, NAB is attempting to secure the crucial support of Axa Asia Pacific's French parent, whose agreement to deal exclusively with AMP expired Saturday. Despite declaring its snubbed bid final, AMP has said it is keeping its options open and has not thrown in the towel.

Both bids are contingent on AXA SA buying the Asian operations of its 54%-owned affiliate and leaving its Australian and New Zealand units to the successful local bidder.

The ACCC, which had said it would report its findings on the AMP bid Wednesday, said it will instead call for further submissions on how both proposals will affect competition in the domestic wealth management industry by Feb. 26 and hopes to make final decisions on both bids by March 17.

-By Bill Lindsay, Dow Jones Newswires; 61-2-8272-4694; bill.lindsay@dowjones.com

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