AMP makes no deal with Ares, ends discussions

AMP has failed to sign a deal with US investment firm Ares and has officially ended talks, almost six months after receiving a takeover bid which sent the wealth giant’s shares soaring.

AMP will continue to splinter AMP Capital and manage its private markets assets (infrastructure and property) separately from its public markets assets (equities and fixed income).

AMP chair Debra Hazelton says the group was not able to reach an agreement with Ares. Credit:Louie Douvis

AMP chair Debra Hazelton said the wealth giant had “substantial and constructive discussions” with Ares regarding the sale, but ultimately these had failed.

“We have not been able to reach an agreement that would deliver appropriate value for our shareholders,” she said in a statement.

“The board has therefore concluded a demerger provides investors with the strongest value outcome, creating two more focused entities, with the agility to pursue new growth in opportunities in their respective markets.”

This internal restructure is also not certain – subject to board, shareholder and regulatory approval.

AMP announced last September it was selling parts of the business but has closed the sale process without sealing any deals. Ares was the only firm to emerge when it launched a takeover last October, which sent AMP’s share price soaring by almost 20 per cent.

However, in February, Ares withdrew this offer after completing due diligence and there has since been an offer to acquire part of AMP Capital, but this too has now been withdrawn.

More to come

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