By Martin Banks - 5th August 2007
The European commission has cleared the proposed acquisition of Dutch bank ABN Amro by Britain’s Barclay’s bank.
In a statement issued today, the executive concluded that the move would not "significantly impede effective competition" in the industry or any substantial part of it.
The move will create one of the world’s biggest banks, with its headquarters in the Netherlands.
In April, the two companies said about 12,800 jobs would be cut as a result of the acquisition, while a further 10,800 jobs would be moved to low-cost locations.
Barclays and ABN Amro said at the time that they expect most of the cuts to their 217,000 workforce to be achieved through natural wastage, the majority coming in the UK, Spain and Italy.
The proposed deal would see Barclays shareholders owning 52 per cent of the enlarged Barclays Group and ABN Amro investors owning the remainder.
The commission described Barclays as a "global financial service provider", operating in over 60 countries.
It said ABN Amro is active in various sectors but predominantly in the Netherlands.
"Today’s decision is without prejudice to the outcome of competing bids," the commission said in a statement.
"Clearance by the commission does not imply that the commission considers that the bid will be successful," the statement emphasises.
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