Fortis details remedies proposed to commission for ABN Amro

21 September 2007

Fortis has detailed, in a trading statement, the remedies it has proposed to the European Commission in order to overcome antitrust objections in its acquisition of ABN Amro assets in the Netherlands.

 

Fortis will be holding discussions with analysts and investors during the period of its rights issue. This statement sets out the results-specific information that may be covered during those discussions. Comments relate to the expected results for the nine-month period ending 30 September 2007, unless otherwise stated. They are based on management expectations using the most recent information available. The current quarter will only be closed as of 30 September, however, so actual results could differ from what is stated below.

 

Update on the potential impact of the remedies presented to European Commission competition authorities

 

In order to secure the approval of the European Commission competition authorities for the acquisition of ABN AMRO, Fortis has been discussing alternative remedies with the European Commission to address its competition concerns in the commercial banking segment in the Netherlands following the transaction. Fortis has proposed, and the European Commission is currently considering, implementing a post-acquisition divestment package relating to specified parts of the Business Unit Netherlands of ABN AMRO (the 'Proposed Divestment').

 

A key element of the Proposed Divestment is the proposed sale of Hollandsche Bank Unie N.V. (an independent, separately licensed commercial bank), 13 advisory branches and two Corporate Client Units (excluding customers with turnover exceeding EUR 250 million), and the sale of the factoring portfolio held by clients of the businesses forming part of the Proposed Divestment.

 

The scope of the Proposed Divestment represents roughly 10% of the Business Unit Netherlands in terms of assets, income statement and projected revenue and cost synergies. The restructuring charges, however, remain unchanged compared to what was presented on 29 May. This assumes that the Proposed Divestment will be approved by the European Commission, whose final decision is expected by 3 October 2007.

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