British Bank Barclays has agreed to merge with Dutch banking giant ABM Amro. The 66 billion euro deal, if it goes ahead, will create one of the world’s largest banking institutions with a combined market value of 125 billion euro. The new partnership is to be regulated by the Financial Services Authority-as opposed to the Dutch central bank as originally thought. John Varley, Barclays Chief Executive believes it is a marriage made in heaven. The union will have a stock value of some 140 billion euro with 47 million customers, including 27 million credit card holders.
Job losses are on the cards as a result of the merger with 12,800 expected to go while a further 10,800 will be moved to low cost locations. However it is not a done deal ABN Amro have agreed to talk to a Royal Bank of Scotland led consortium which is expected to offer a higher price for the Dutch bank.