Mumbai: The Netherlands government has acquired the Dutch subsidiary of banking and insurance major Fortis for about 16.8 billion euro, a few days after the Benelux countries extended a lifeline to the beleaguered group.
The Netherlands government has acquired Fortis Bank Nederland (Holding) N V, including the participation in RFS Holdings B V that represents the acquired activities of ABN AMRO, Fortis Verzekeringen Nederland N V, and Fortis Corporate Insurance N V and the deal has been approved by the Dutch Central Bank, Fortis said in a statement issued on Friday.
The governments of Belgium, Netherlands and Luxembourg had earlier extended Fortis funds to the tune of 11.2 billion euro, in an effort to support the troubled financial service group.
The three governments had agreed to make investments in exchange for 49 per cent stake each in three different subsidiaries of the Belgian giant, falling in their respective jurisdictions.
While the Netherlands would invest four billion euro in Fortis Bank Nederland (Holding) NV, the government of Belgium would pump in 4.7 billion euro into Fortis Bank NV/SA (Belgium) and Luxembourg would inject 2.5 billion euro in Fortis Banque Luxembourg SA.
The latest transaction replaces the previously announced investment of four billion Euro in Fortis Bank Nederland Holding N V and the Fortis Group will now include Fortis Insurance Belgium, Fortis Insurance International and the banking activities excluding Fortis Bank Nederland (Holding) N V.