Barclay- ABN AMRO Bank deal in $90 billion, more job opportunity for Indians
NI Wire
Delhi
Mon, 23 Apr 2007: April 23: In the world??s biggest financial deal, Britain??s Barclays Bank will buy Dutch ABN Amro, worth £45bn (90bn). ??It has surpassed the Scotish bank Royal Bank of Scotland after the delays in the meeting with ABN Amro,? official sources reported on Monday, April 23, in London. The new deal will crea a total of 10,800 new jobs, particularly in areas where economy is still clinging to the prospective future.
India will be one of the best choices, the report assumes.
There were more than half a dozen companies in the bidding war to purchase ABN Amro on Monday and Barclay appeared winner following it??s highest bid worth $90 billion. After the Barclay-ABN merger, this venture will be the biggest financial company in Europe. The total share will be distributed in the ratio of 52 to 48, in which Barclays will own 52 percent shares while ABN Amro will own the rest. The Royal Bank of Scotland was one of the biggest rivals of Barclays, while Spanish bank Santander was another big player in the bid, which owned UK's Abbey and Belgian bank Fortis.
According to one analyst, Royal Bank of Scotland RBS, has claimed to make the higher bid than Barclays but Barclays less bid seems to have more cost savings. The total number of customers will be 47 millions, which include 27 millions credit card holders. The total joint revenue of the bank will be £94 billion. There are more than 21,700 workstations operating across the globe and some of which may receive losses, especially in UK, Spain and Italy. The 12,800 employees will lose their jobs while more than 10,000 new jobs will be produced especially in low cost locations. It is the company??s strategy to recruit the new staff especially in India, where labour cost is low. As such the company can earn more profit in less investment. There are three branches of Barclays already in India.