Barclays plans shifting its HQ to Amsterdam

Our Banking Bureau
21 March 2007

The UK's third largest bank, Barclays, which is in exclusive takeover talks with financial services giant, ABN AMRO, is said to have moved closer to its buy out plans of its Dutch rival after agreeing to shift its headquarters to Amsterdam and share some top jobs with ABN AMRO.

Barclays had yesterday announced having opened exclusive talks with ABN for its acquisition. (See: Barclays opens buy out talks with ABN AMRO). The merger would be one of the biggest in the financial services sector and may prompt rival bids, analysts said.

If the takeover succeeds, it would create a bank worth as much as $155 billion (approximately Rs 691,600 crore), with 47 million customers and 220,000 staff worldwide.

Under the terms that are currently under negotiations, Barclays chief executive John Varley is expected to retain his job in the merged entity, while ABN's Rijkman Groenink could be the chairman.

However, the Barclays offer may not only invite rival bidders, but also make Barclays itself a takeover target, analysts have warned.

Other points being negotiated include a primary listing for the merged entity on the London Stock Exchange and a secondary one in Amsterdam. The financiers of the acquisition have also proposed using the Dutch Central Bank as the lead regulator and basing its management structures and governance on UK models.