Insurance company AXA SA (CS.FR) said Thursday it is reviewing its Asian strategy after the Australian competition authority opposed National Australia Bank Ltd.'s (NAB) A$13.3 billion bid for its AXA Asia Pacific Holdings (AXA.AU) unit, potentially throwing its growth plans for the region into disarray.

"AXA remains fully committed to support the Australia and New Zealand businesses and will continue to review its options in the context of its growth strategy in Asia," the company said in a statement.

The Australian Competition and Consumer Commission earlier maintained its April 19 rejection of what would be the biggest deal in Australia's financial services history, arguing it would crimp competition in the market for supply of retail investment platforms--internet portals that link retail investors with the wide range of investment products fund management companies provide.

Under NAB's proposal, 55% owner AXA SA would retain the lucrative Asian assets of AXA APH, while NAB would pay minority shareholders either A$6.43, or 0.1745 NAB shares and A$1.59 for each AXA APH share and take ownership of the Australian and New Zealand businesses. NAB won the necessary support of AXA APH's independent directors in December, trumping a lower cash and shares bid from AMP Ltd. (AMP.AU), which would also see the target split along the same geographic lines.

AXA said in its statement: "AXA's decision to enter into this transaction reflected AXA's desire to increase its presence and allocate additional capital to the fast growing Asian region."

A Paris-based trader said the rejection was disappointing. He pointed out that it was the second time the complex deal had stalled and that AXA and NAB may now struggle to find the sort of concessions needed to push it through. At 0703 GMT, AXA shares were down EUR0.29, or 2.3% at EUR12.72, underperforming the Stoxx Europe 600 insurance index, which was down only slightly.

ACCC Deputy Chairman Peter Kell said in a statement that undertakings proposed by the bank and AXA APH to onsell the target's fledgling investment platform North to a smaller local wealth manager, IOOF Holdings Ltd. (IFL.AU), "do not provide sufficient certainty that the ACCC's competition concerns will be addressed."

AXA shares closed at EUR13.02 in Paris Wednesday.

-By Digby Larner, Dow Jones Newswires; +33 1 4017 17 48; digby.larner@dowjones.com.

(William Horobin contributed to this article.)
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