National Australia Ltd.'s bid for AXA Asia Pacific Holdings faces a new setback as the regulator shelved its decision until September.

The Australian Competition & Consumer Commission, according to a report on the Australian newspaper, said has not made a decision on the National Australia Bank Ltd's proposal.The two parties have from July 15 next week to terminate the agreement or pursue another one.

The country's largest bank wants a possible buy-in or buy-out of AXA's North platform to have a broader bancassurance product, among others.

Sources familiar to the deal said National Australia Bank is set to lodge a revised proposal for its $13.3 billion takeover of wealth manager AXA Asia Pacific with the competition regulator within this week.

As AXA Asia Pacific and its parent France's AXA SA have agreed to a deal, the Australian Competition and Consumer Commission has not been in favour. The revised proposal, according to sources, is an attempt to make it more amenable to the regulator and financial terms of the deal will remain unchanged.

Under the deal AXA SA will buy the assets of AXA Asia Pacific in eight Asian countries as it steps up increase its focus in emerging markets.