AXA Asia Pacific shareholders voted overwhelmingly yesterday in favour of merging with AMP and also selling AXA AP's Asian businesses to AXA's French parent, AXA SA.With 99 per cent of votes cast, about 95 per cent favoured the proposals.AMP put the market on notice earlier this year that if the deal went ahead it would issue A$600 million of subordinated debt to fund the cash component of its acquisition.AMP's maximum cash contribution to the deal will be $450 million. The balance of cash raised in the subordinated debt issue will be used to fund part of the expected $285 million in integration costs.AMP's cost for acquisition of the Australian and New Zealand businesses is $4.2 billion. AMP is paying $7.2 billion for AXA SA shares and $6.1 billion for the minority shares. It will repay $663 million of loans granted by AXA SA to AXA AP. Offsetting this, it will receive $9.8 billion from AXA SA for the Asian businesses.AXA SA has effectively underwritten the $600 million debt issue, offering to purchase the issue "to the extent that other institutional investors elect not to participate". AMP will pay AXA SA 250 basis points over the three-month bank bill swap rate.Bankers will be interested to see if AMP makes good on its claim that the deal will allow it to expand its banking business.AMP Bank has 110,000 customers. According to APRA data, it has a 0.8 share of the mortgage market and a 0.3 per cent share of the retail deposit market.An explanatory memorandum, issued earlier this year, says: "AMP expects the merged group to provide improved retail investment platforms, as well as offering competitive bank deposit and home mortgage products to more Australians. Increased critical mass, along with the merged group's combined financial resources and technical expertise, should enable a higher level of investment in enhanced products, services and systems than either company could deliver separately."AMP chairman, Peter Mason, said earlier this year: "As securitisation markets recover and more funding becomes available our aim will also be to use the strengths of the merged businesses to help provide consumers with more competition and choice in the banking market."