Page 418 - The Case Lab Book

Fortis will take over ABN's retail bank in Holland (where it sponsors Ajax football club),
and its asset management and private clients worldwide. The retail bank is the part of
the business that offers loans, credit cards, mortgages and savings accounts to the
public.

Second largest UK bank

Overall, RBS will take on 30,000 extra
employees, move into 25 countries and will
increase its diversification geographically and

across product lines. It will be No 5 in the United
Q: Who will ultimately own which parts of States and No 5 in Asia Pacific, while it will
ABN AMRO? remain the second biggest European bank,
behind HSBC.
A: The Consortium banks will each be
acquiring those parts of ABN AMRO that However, for corporate and institutional banking,
best fit with its existing businesses and
strategic priorities: RBS will be the biggest bank in Europe with far
better profit margins than those available from

• Fortis will own BU Netherlands high street banking. Then again, this part of ABN,
(excluding wholesale clients), BU the operations that deal with private equity,
Private Clients (globally excluding hedge funds, other banks and the treasury
Latin America) and BU Asset departments of companies with an 82% cost-
Management. income ratio, had been most affected by the sub-
• RBS will own BU North America,
BU Global Clients and the prime catastrophe.
wholesale clients in the Netherlands
and Latin America (excluding ABN's Global Clients business will also pass over
Brazil), BU Asia (excluding Saudi to RBS, which will allow it to lend money to and
Hollandi), BU Europe (excluding take deposits from sizeable international
Antonveneta) and the product
capabilities serving its clients within companies and financial houses that operate on
the Global Markets and Transaction more than one continent. In addition RBS will
Banking Product Business Units. acquire ABN's International Cash Management
• Santander will own Antonveneta system, a complex payment system that will
and BU Latin America (excluding allow it to bank for multinational firms.
wholesale clients outside of Brazil).

Finally, RBS will take ABN's businesses in the
Sir Fred Goodwin, 10 Aug 2007; De Telegraaf and
Betten Financial News Asia-Pacific where previously it had very little
presence. This part of the deal will bring with it banking licences in 16 countries such as
China, Singapore and India where it is notoriously difficult for non-native banks to win
licences. It is likely that RBS will set up a global operations centre in Amsterdam, but
the wholesale banking will continue to be run from London.