(24 April 2007 – Europe) UK bank Barclays has inked a deal to buy ABN Amro for more than 67 billion euros (US$91.2 billion).ABN will also spin off its US bank LaSalle to Bank of America for US$21 billion, which could provide cash to pay for the integration of itself and Barclays.
Barclays and ABN Amro are targeting some 3.5 billion euros in cost savings and additional revenue by 2010.
This will lead to more than 23,000 jobs being cut or moved offshore under the new structure. Some 12,800 jobs have been earmarked for the axe out of a combined work force of 217,000.
Another 10,800 jobs will be shifted to cheaper countries such as India, a policy ABN Amro has pursued enthusiastically over recent years with its back office centres in Mumbai, Chennai and New Delhi.