Barclays proposal for ABN gets EU nod

The proposed takeover of ABN AMRO, (Netherlands) by Barclays Bank, has been approved by the European Commission (EC) under the EU merger regulation. The EC said that the merger will not hamper effective competition in the European Economic Area (EEA) or any substantial part of it. Both banks have their respective presence in their home markets and the merged entity will face sufficient competition from a number of operators.

Barclays has a strong presence in the UK and ABN Amro in The Netherlands. Barclays is currently not active in retail and corporate banking in ABN Amro's home market, while ABN Amro has low operations in these segments in the UK.

This approval however the EC stated “Today's decision is without prejudice to the outcome of these possible competing bids. Clearance of the proposed transaction by the Commission does not imply that the Commission considers that the bid will be successful”. Apart from Barclays, ABN AMro has been bid for by the consortium formed by Royal Bank of Scotland, Fortis and Santander.