National Australia Bank Ltd. (NAB.AU) said Tuesday it has struck an agreement with France's AXA SA (AXA) over its planned takeover of AXA Asia Pacific Holdings Ltd. (AXA.AU), which will see NAB emerge with AXA Asia Pacific's Australian and New Zealand operations.

Under the deal, Paris-based AXA will buy AXA Asia Pacific's Asian operations for A$9.4 billion, out of which A$700 million of AXA Asia Pacific's Australian and New Zealand debt will be repaid, meaning NAB will take the Australian and New Zealand operations debt free.

"The proposal agreed today provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand," National Australia Bank Chief Executive Cameron Clyne said in a statement. "It is also an attractive, strategically aligned opportunity that enhances NAB's activities in the growing wealth management industry," he said.

NAB's offer, which has the backing of AXA Asia Pacific's board, is subject to a break fee of A$35 million payable to the bank under certain circumstances.

The agreement expires on July 31, but can be extended to Oct. 31, and remains subject to approval by Australian regulators and Australia's Treasurer Wayne Swan.

-By Lyndal McFarland, Dow Jones Newswires; 61-3-9292-2093; lyndal.mcfarland@dowjones.com
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