=DJ ABN Amro, Fortis NL To Complete Retail Tie-Up By End 2010

   By Maarten van Tartwijk
   Of DOW JONES NEWSWIRES

AMSTERDAM (Dow Jones)--Dutch state-owned bank ABN Amro Holding NV Tuesday said it expects to complete the tie-up of its retail bank with that of nationalized peer Fortis Bank Netherlands before the end of this year, a key move in plans to fully merge the two businesses.

ABN Amro said that merging the retail businesses will start in April and should be finalized by the end of this year. The tie-up will create a major Dutch retail bank with 5.5 million customers and around 500 branches.

The merger still needs the approval of the Dutch Central Bank and the European Commission, ABN Amro said.

Combining the retail units is a key element in merging ABN Amro and Fortis Bank Netherlands, which is expected to be completed in 2012. In addition to its retail operations, the new bank, which will be called ABN Amro, will comprise a midsize European private banking unit and an investment banking business focused on the Netherlands and a couple of niche markets.

ABN Amro and Fortis Bank Netherlands currently still operate under their own names in the Dutch retail market with around 650 branches. The merger will result in the closure of 150 branches and will lead to 2,200 job cuts, of which 600 have already been made.

ABN Amro and Fortis Bank Netherlands were bought in October 2008 by the Dutch state as part of the breakup and financial rescue of former Dutch-Belgian financial services giant Fortis NV.

The new ABN Amro is scheduled to be privatized again by 2013 or 2014, officials have said.

-By Maarten van Tartwijk, Dow Jones Newswires; +31-20-5715200l; maarten.vantartwijk@dowjones.com

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(END) Dow Jones Newswires

March 09, 2010 08:50 ET (13:50 GMT)

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