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Mergers and Acquisitions

Identify a recent merger or acquisition you have heard about in the news or better yet, that you have been involved with.

Determine what type of merger or acquisition it was and discuss what effects the merger or acquisition had on the companies involved, the industry sector, and any of the other positives or negatives.

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We look at the recent acquisition of ABN Amro bank with Royal Bank of Scotland (RBS) Bank. This would be classified as a horizontal merger since both the companies are in the same line of business.

In the acquisition, RBS would acquire the Global Wholesale Businesses and International Retail Businesses of ABN AMRO. For the acquisition, RBS would pay Euro 16 billion of which Euro 5 billion will be financed by equity. Subsequent to the acquisition, this business would become part of the RBS portfolio and would help RBS in expanding its footprint globally. RBS ...

Solution Summary

The solution provides details about the merger between ABN Amro Bank and RBS