• Most Popular
  • Most Shared

FACTBOX: Who gets what in Fortis break-up

Fri Oct 3, 2008 4:15pm EDT

Stocks

   

BRUSSELS/AMSTERDAM (Reuters) - The government of the Netherlands nationalized the Dutch banking and insurance activities of troubled financial services company Fortis (FOR.BR)(FOR.AS) on Friday after it hit an acute cash crunch.

Following is an overview of how Fortis will be broken up.

* The Netherlands acquires the Dutch banking arm, Fortis Bank Nederland Holding NV, including Fortis' share in RFS Holdings BV -- the company Royal Bank of Scotland (RBS.L), Banco Santander (SAN.MC) and Fortis set up to take over ABN

AMRO.

* The Dutch state also buys insurance units Fortis Verzekeringen Nederland NV and Fortis Corporate Insurance NV.

* The total purchase price is 16.8 billion euros ($23.3 billion), and the deal replaces an agreement struck last weekend under which the Dutch state invested 4 billion euros into Fortis Bank Nederland Holding NV for a 49 percent stake.

* Dutch central bank governor Nout Wellink said he expected the integration of ABN AMRO into Fortis to be accelerated now because it had become less complex. He estimated annual synergies at around 1 billion euros.

* The Dutch central bank would not comment on what would happen to those parts of ABN AMRO that were to be sold to Deutsche Bank (DBKGn.DE) -- a process that the central bank put on hold this week.

* Following the transaction, Fortis Group consists of Fortis Insurance Belgium, Fortis Insurance International and the remaining banking activities, notably Fortis Banque Luxembourg SA and Fortis Investment Management SA/NV.

SOURCES: Fortis, Dutch finance ministry, Dutch central bank

(Reporting by Niclas Mika; Editing by Gary Hill)



More from Reuters

A security personnel stands guard near oil pipelines at Tawke oil field near Dahuk, 400 km (245 miles) north of Baghdad May 9, 2009. REUTERS/Azad Lashkari

Now or never for Big Oil

The pressure's on for oil giants looking to secure rare access to cheap Middle East reserves as Iraq gears up to auction off some of the world's largest untapped oilfields.  Full Article 

A glass of tap water is served at a restaurant in New York June 10, 2009 REUTERS/Shannon Stapleton

G7 glass half empty

Recovering from a punishing global recession has forced the world's richest nations to pay dearly, prompting subdued growth prospects and delayed sighs of relief.   Full Article