Tax Planning

Case Study

Mergers and Acquisition

An Insight into:

RBS acquisition of ABN AMRO

Submitted for

Partial Fulfillment of HRM course

Submitted by:

Name | Roll No |

Ankit Mittal | 09 |

Ankush Vig | 10 |

Anubhav Kotra | 11 |

Anupama Tirkey | 12 |

Anurag Chauhan | 13 |

Arun Lakhanpal | 14 |

Arun Singh | 15 |

Ashish Kumar | 16 |

* Table of Contents

Introduction 3

Mergers and Acquisitions Overview 4

RBS Acquisition of ABN AMRO 5

Conclusion 7

Bibliography 8

Introduction

In this case study we will look into the RBS acquisition of ABN AMRO in 2007 which was the largest cross border banking takeover in European history. This acquisition was much talked about since then because after the takeover by RBS led consortium the 2 of the banks i.e. RBS & Fortis got into serious financial trouble. According to some analysts it is because of short sightedness of consortium management and the high price paid by the consortium that lead to this disaster but some analysts were of the view that RBS made a conscious strategic decision to buy the ABN AMRO business. They thought that the assets were of great strategic value, when in fact they were toxic. The problem was not one of lack of information; it was simply a wrong macro view of this business.

In this case study we will look into the various steps during the acquisition cycle plus the eventual outcome of the deal which lead to this failure.

Mergers and Acquisitions Overview

Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, which bring separate companies together to form larger ones. Deals can be worth hundreds of millions, or even billions, of dollars. They can dictate the fortunes of the companies involved for years to come. For a CEO, leading an M&A can represent the highlight of a whole career. And it is no wonder we hear about so...