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21 September 2007

Fortis receives approaches for sale of assets in ABN Amro deal




Gilbert Mittler, Fortis' Chief Financial Officer, said the bank has received approaches from several international and Dutch banks regarding the assets the European Commission is demanding the bank sell to win antitrust approval for its ABN Amro purchase. 

 

As part of the three-way acquisition of ABN Amro, the Royal Bank of Scotland will acquire the international banking business, Belgo-Dutch bank Fortis will buy the Dutch retail banking unit and Spain's Santander will swallow the Italian and Brazilian subsidiaries. 

 

Mittler, on a conference call, said that while the exact scope of the asset sale had yet to be defined, the bank has “earmarked a portfolio of activities the European Commission considers we should divest.”

 

While no buyer has yet been defined, Mittler said interest has been strong, accentuated by the relatively few competitors in the Dutch market and the profitability of commercial banking activities. A sale won't be expected for some months following the acquisition. 

 

Earlier the company identified the assets it had already offered, a key element of which is the sale of Hollandsche Bank Unie, an independent, separately licensed commercial bank, 13 advisory branches and two Corporate Client Units (excluding customers with turnover exceeding 250 million euros), and the sale of the factoring portfolio held by clients of the businesses forming part of the proposed divestment. 

 

Mittler said they may have to add a number of additional activities to ensure the independent viability of the activities proposed for sale. In order to win conditional approval in the first phase of a merger review, the acquiring company often needs to give up more than is absolutely required to solve competition issues in order to avoid an extended investigation. 

 

The commission will rule on the Fortis part of the acquisition by 3 October. RBS and Santander won approval on 19 September. Strong indications of demand for the assets would likely make it easier for the commission to approve the deal. The commission will also have final approval over the buyer of the assets being sold by Fortis. 



© MLex


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