The Acquisition of ABN AMRO (A)


The Acquisition of ABN AMRO (A)
Case Code: BSTR345
Case Length: 20 Pages
Period: 2007
Pub Date: 2009
Teaching Note: Not Available
 Price: Rs.300
Organization: ABN AMRO, Royal Bank of Scotland, Fortis, Banco Santander Central Hispano
Industry: Banking, Financial Services
Countries: UK, Belgium, Spain, The Netherlands
Themes: Mergers, Acquisitions, Strategic Alliances
The Acquisition of ABN AMRO (A)
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses the acquisition of ABN AMRO by a consortium of three banks - Royal Bank of Scotland, Fortis and Banco Santander Central Hispano. The case examines in detail the bidding war between the consortium and another contender Barclays. Both the parties were keen on acquiring ABN AMRO and went on increasing the bid amount. Ultimately, after a six-month battle, the consortium emerged the winner, after it agreed to pay US$ 100 billion in what was touted as the biggest acquisition in the European banking sector. The case also discusses in detail the financial aspects of the deal and the challenges the consortium members could face in integrating the different divisions of ABN AMRO into their own operations.

Issues

The case is structured to achieve the following teaching objectives

  • Study the rationale for the acquisition of ABN AMRO
  • Analyze the bidding war between the consortium and Barclays
  • Examine the benefits the consortium members could derive from the acquisition
  • Understand how the acquisition of ABN AMRO was financed

Contents

Keywords

ABN AMRO, Royal Bank of Scotland, Fortis, Banco Santander Central Hispano SA, Barclays, Banca Antonveneta SpA, Consortium Banks, La Salle Bank, Bank of America, Abbey National, Acquisition, Global Banking Industry , Merger Integration, Wholesale Banking Business, Asset Management, Retail Banking, Corporate Finance, Debt Management, Merger Valuation, Financing of Acquisition, Risk Management, Synergies from the Merger

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