RBS secures takeover of ABN Amro
A consortium led by the Royal Bank of Scotland has won the battle to buy the Dutch bank ABN Amro.
About 86% of ABN Amroâs shareholders have accepted a âŹ71 billion ($98.5 billion; ÂŁ49 billion) offer to clinch Europeâs biggest ever banking takeover. The Royal Bank of Scotland consortium, which also includes Dutch bank Fortis and Spainâs Santander, is now expected to break up the Dutch lender. Last week Barclays withdrew from the bidding war for the bank.
Cash factor
The value of Barclaysâ offer fell with its share price this summer amid widespread turmoil in the banking sector, leaving it at a âŹ10 billion disadvantage to the RBSâs mostly cash offer. ABN is now widely expected to be carved up between the members of the RBS consortium. The break-up of ABN will involve 4,500 branches across 53 countries and unravelling businesses ranging from cash management operations in Asia to retail banking in Brazil.
RBS is expected to take its wholesale and investment banking business and its Asian operations while Santander will get ABNâs Italian and Brazilian units, and Fortis its Dutch business and wealth and asset management operations. âFor Royal Bank of Scotland it looks more of a challenge, especially as it is acquiring the business most affected by the recent market turbulence,â said Bear Stearns analyst Christopher Wheeler. (BBC News )
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