Fortis, ABN AMRO and Deutsche Bank Agree on Sale of Parts of Business Unit Netherlands
Fortis, ABN AMRO and Deutsche Bank have signed an agreement by which Deutsche Bank will acquire from ABN AMRO parts of its commercial banking activities in the Netherlands for €709m in cash. The businesses to be acquired by Deutsche Bank are part of ABN AMRO Business Unit Netherlands (BU NL) and include two corporate client units that provide a range of financial services to large corporate clients; 13 commercial advisory branches that serve medium-sized clients; parts of the Rotterdam-based bank Hollandsche Bank Unie N.V. and the factoring services company IFN Finance B.V., the Dutch part of ABN AMRO’s factoring unit IFN Group Finance. The sale of the businesses to Deutsche Bank is in line with the commitments that Fortis made to the European Commission (EC) on 3 October 2007 aimed at addressing the EC’s concerns regarding concentration in the Dutch banking market resulting from Fortis’ acquisition of certain ABN AMRO assets. The businesses to be acquired serve over 35,000 commercial business clients as well as 8,000 private clients and employ 1,400 people. The terms and conditions of the sale are such that ABN AMRO will provide initial credit risk coverage for around €10bn of risk weighted assets (RWAs). The capital required for this credit risk coverage will be released over time.