Netherlands-based bank ABN Amro has confirmed the sale of ABN Amro North America Holding, which principally consists of the retail and commercial banking activities of LaSalle Bank Corporation, to Bank of America, for a total purchase price of $21 billion in cash.
However, ABN Amro’s North American asset management businesses and certain businesses within ABN Amro’s North American global markets and global clients operations are not included in the sale.
Chicago-headquartered LaSalle has been the core of ABN Amro’s US operations since its acquisition almost 30 years ago. As a result of both organic and acquisition growth, LaSalle became one of the 20 largest bank holding companies in the US.
The excess capital from the sale of LaSalle is expected to amount to approximately E12 billion, which will be distributed by the management of the combined group resulting from the proposed merger of ABN Amro and Barclays to the shareholders of the combined entity in a tax efficient form, primarily through buy-backs after completion of the offer.
Meanwhile, the purchase of LaSalle represents an important strategy opportunity for Bank of America in augmenting its unparalleled business platform in the US.
The transaction is anticipated to complete late 2007 and is subject to regulatory approvals and other customary closing conditions.