InterBank is the largest specialized credit provider in the Netherlands, while DMC Groep is the third largest broker in the country, specializing in consumer credit with a ‘intermediated’ portfolio of E217 million at year end 2006.
Already operating in the Netherlands with Ribank, a fully-owned subsidiary, Sofinco is accelerating its development in the Dutch market, and has become the first local specialized company in consumer credit, with a market share growing from 3% to 14%. This deal will allow Sofinco to strengthen its expertise in distributing consumer credit through a broker’s network, and to improve its performance thanks to potential synergies between both branches.
ABN Amro’s decision to divest the two groups is in line with its aim to focus on activities that are core to its strategy. At the end of 2006, the bank determined that both InterBank and DMC were non-core businesses, and that it would explore the possibility of divesting the intermediary consumer finance business of InterBank and DMC.
The acquisition is now to be reviewed by the Dutch National Bank and is expected to be completed before year end.
