National Australia Bank (NAB) will have to do more than sell off the North investment platform to appease the competition regulator’s concerns over its bid for the local units of Axa Asia Pacific Holdings (Axa APH).

Speaking on Sky News last week, Australian Competition and Consumer Commission (ACCC) Chairman Graeme Samuel quashed recent speculation the sale of the North platform would be enough to allay concerns over the proposed $13.3 billion acquisition.

He says a fundamental concern is the effect on distribution, with a combined NAB/Axa certain to emerge as the dominant industry player.

“The North platform on its own is not the sole issue,” Mr Samuel said. “You have got to have… a business that can use and integrate that platform in a way that can provide real competition.”

The ACCC rejected the NAB takeover proposal in April on the grounds that it would result in “a substantial lessening of competition in the market for retail investment platforms for investors with complex investment needs”.

At the same time the commission opened the door to a rival $12.85 billion bid from AMP that was initially gazumped by the NAB offer.

NAB and Axa recently extended the term of an exclusivity arrangement until July 15.