Dutch financial services giant ABN AMRO came a step closer to financing its acquisition of Alleghany Asset Management (AAM) after the firm completed the sale of European American Bank (EAB) to Citibank.
The sale of EAB - a New York-based commercial bank deal - is worth a US$1.6bn equity stake, and proceeds from the transaction will also be used to partly fund ABN’s purchase of US commercial bank, Michigan National Corporation.
ABN first announced its intentions concerning Chicago-based AAM - which has $28bn under management - in October last year. The acquisition gives ABN AMRO access to more than 550 institutional clients in North America.
AAM’s main subsidiaries are Atlanta-based Montag & Caldwell and the Chicago Trust Company in Chicago, with assets under management of US$30bn and US$15bn respectively. About 80% of the funds under management are institutional assets, sourced primarily through pension consultants.
By Madhu Kalia
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
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