Deutsche Bank to buy ABN Amro
Deutsche Bank receives EU approval to purchase ABN Amro for EUR 709B, becoming the fourth-largest bank in the Netherlands.2 October 2008
BRUSSELS -- Deutsche Bank won EU approval to buy ABN Amro's Dutch commercial banking business for EUR 709 million.
The European Commission said Wednesday it approved the deal, saying it would not harm competition because the new company would only have a small share in banking operations, where they are both rivals.
The businesses Deutsche Bank will buy are part of ABN AMRO Business Unit Netherlands, and include two corporate client units, 13 commercial advisory branches, parts of the Rotterdam-based Hollandische Bank Unie NV and the company IFN Finance BV.
Deutsche Bank, which is already in the Netherlands, will become the fourth-largest provider of corporate and investment banking services in the Netherlands after the sale.
The businesses will use the Deutsche Bank brand name and become part of Deutsche's Global Transaction Banking business.
The businesses to be bought serve more than 35,000 business clients as well as 8,000 private clients, and employ 1,400 people.
The sale of the businesses to Deutsche Bank is similar to the commitments that the Belgian-Dutch bank Fortis made to the European Commission in 2007 when it took over parts of ABN AMRO, to ensure competition in the Dutch banking market.
Fortis will now have to sell the rest of ABN Amro that it owns under an agreement with the Dutch, Belgian and Luxembourg governments which bailed it out Sunday for EUR 11.2 billion.
[AP / Expatica]