Deutsche to snap up ABNAmro assets
DEUTSCHE Bank agreed in principle to buy some ABN AMRO assets from the Dutch state in a deal which should clear the way for a merger of nationalised banks ABN and Fortis Bank Nederland.
Under the deal, the acquisitive German lender will boost its Dutch operations by acquiring commercial bank HBU, 13 advisory branches, two corporate client units and a factoring business.
The pact, which is not final and depends on negotiations and a host of regulatory approvals, is the same in terms of assets as the deal Deutsche, Germany’s biggest bank, agreed with former ABN owner Fortis in July 2008.
The European Commission mandated the sale of those assets in late 2007 to preserve competition in the Dutch market after a consortium took over ABN AMRO that year.
The financial terms of the proposed deal were not disclosed.
The Dutch government said yesterday it will seek an extension of the EU deadline to finalise the agreement.
The merger of ABN and Fortis, followed by an eventual initial public offering to markets, is core to the Dutch state’s exit strategy for the banks, which it nationalised in October 2008 for €16.8bn (£15.2bn).
Chief executive at the bank Josef Ackermann has recently urged his board to look for targets but cautioned them to be selective.
“Don’t buy distressed assets, buy from distressed investors,” he said.
The Dutch acquisitions by Deutsche will make it the fourth-largest provider of corporate and investment banking services in the country, the bank said.
Konrad Becker, a banking analyst with Merck Finck said Deutsche’s targeting of Dutch assets appeared opportunistic rather than signalling a shift in strategy.