The move will provide ABN AMRO with a full commercial banking license in the Philippines for the first time, a prerequisite to expanding its wholesale banking activities in the country.
ABN AMRO already has an offshore banking license, a thrift bank, and a securities brokerage license in the Philippines, but was not one of the foreign banks awarded a full branch license in 1992 by the central bank. In late 1999, it acquired Great Pacific Savings Bank in order to upgrade its status to a full commercial bank, but was prevented from doing so by a change in local banking regulations in early 2000.
The acquisition of TA Bank, which has a total asset of P1.5 billion and a full commercial bank license, provides an ideal solution to expanding ABN AMRO Savings Bank and the merged commercial bank will be 100 percent owned by ABN AMRO.
TA Bank was acquired by Manila Bank from the TA Group of Malaysia in July 2000. Its disposal follows a subsequent shift in Manila Bank’s strategy to focus on the middle market and SMEs.
Carmelo Maria L. Bautista, ABN AMRO country representative in the Philippines, said "This deal demonstrates ABN AMRO’s intent to be a major player in the Philippines wholesale banking market. We are the only foreign bank to make two bank acquisitions in the country in the last 18 months. It reflects our positive long term view on the Philippines, as well as our commitment to make the investments needed to build a robust commercial bank franchise."
The acquisition of TA Bank is subject to approval by the Bangko Sentral ng Pilipinas and the Dutch Central Bank. It is expected to be concluded within 60 days.
ABN AMRO is one of the largest financial institutions in the world and serves its wholesale, consumer and commercial, and private and asset management clients through an extensive global network. Headquartered in Amsterdam, ABN AMRO has total assets of over $500 billion and employs more than 100,000 staff, ABN AMRO was founded in 1824 and has been active in Asia since 1826.