Today's completion of the legal separation of RBS and the closing of the EC Remedy is another important step towards the legal merger of ABN AMRO Bank and Fortis Bank Nederland in the second half of 2010.
As of today ABN AMRO Bank N.V. (ABN AMRO Bank) is wholly owned by the Dutch State and independent of RBS Holdings N.V. (the former ABN AMRO Holding N.V.). The separation of ABN AMRO Bank N.V. is now complete, with all the requirements of the relevant supervisory authorities having been met.
ABN AMRO Group N.V.
ABN AMRO Bank N.V. has been transferred to a new holding, ABN AMRO Group N.V., wholly owned by the Dutch State, which also holds the State's shareholding in Fortis Bank (Nederland) N.V. Both banks are now consequently subsidiaries of the same parent company and can proceed to legal merger. At the same time, '403 declarations' have been issued to the effect that the new holding accepts joint and several liability for commitments entered into by ABN AMRO Bank and its subsidiaries, as well as by Fortis Bank Nederland. Until they legally merge, both banks will operate as independent banks with their own banking licences. After the legal merger, the two banks will operate as a single entity under the name of ABN AMRO Bank N.V. As the European Commission reported in early February, the Commission is investigating the capital measures for both banks.
The disposal of part of ABN AMRO Bank's commercial client activities in the Netherlands was also completed today. This transaction represents the response to the European Commission's requirement (the 'EC Remedy') for certain activities to be sold in order to preserve competition. The Remedy branches (NEW HBU II and IFN Finance Nederland) have today been formally transferred to Deutsche Bank. The completion of this transaction means that the conditions set by the European Commission for integration of the two banks in the second half of the year have now been met.
New governance of ABN AMRO and Fortis Bank Nederland
ABN AMRO Bank and Fortis Bank Nederland were today transferred to the holding company ABN AMRO Group N.V. Although the two banks will continue to operate as separate banks within the holding company until the legal merger, as of today the Managing Boards and the Supervisory Boards of the holding and the two banks consist of the same members.