ABN AMRO and Deutsche Bank have signed a share purchase agreement confirming the agreements reached for the sale of NEW HBU II and IFN Finance. The sale price, including a guarantee provided for 75% of the credit losses and an amount for other liabilities and costs, is EUR700m.
The sale enables compliance with the condition set by the European Commission for integration of the Dutch businesses of ABN AMRO acquired by the Dutch State and those of Fortis Bank Nederland.
ABN AMRO has analysed the impact of the transaction on the group’s results and capital ratios. According to its analysis, the transaction will have a negative impact of between EUR800 and EUR900m. ABN AMRO expects to account for these losses as soon as the conditions for effecting the closing have been met, immediately following the legal de-merger. To cover the negative impact on capital, a capital injection of the Dutch State has been approved by the Dutch Parliament.
The final steps in the process prior to the closing are the transfer of the NEW HBU II shares to the new ABN AMRO Bank and the legal de-merger of the majority of the businesses acquired by the Dutch State into the new ABN AMRO Bank. The closing of the NEW HBU II and IFN Finance transaction is expected to take place thereafter in the early spring of 2010.
