Belgian bank KBC is considering a possible takeover of ABN AMRO. The Brussels-based lender is reportedly interested in its Dutch rival in an effort to strengthen its European presence, according to financial news agency Bloomberg.
Whether a deal will actually materialize is far from certain. KBC is said to still be in the early stages of exploring the feasibility of such a transaction. It is also unclear whether it would involve a full takeover or just a minority stake. Neither ABN AMRO nor KBC have confirmed that a deal is imminent.
KBC has been keeping a low profile in Belgian media. “As KBC has previously and repeatedly stated in its strategy, we continuously monitor the market to identify opportunities that strengthen our strategic objectives. In doing so, we remain committed to financially sound and sustainable growth”, a spokesperson for the Belgian bank said in a statement.
ABN AMRO’s shares have sharply risen this year on the Amsterdam stock exchange, giving the bank a market value of around 21.7 billion euros.
With the Dutch state gradually reducing its stake in ABN AMRO, the bank has increasingly been mentioned as a potential takeover target in the European banking sector. BNP Paribas and Deutsche Bank have both previously considered ABN AMRO as an acquisition candidate in recent years.
KBC, however, has not previously been in the picture as a potential buyer. The bank operates mainly in Belgium and Central and Eastern Europe, with branches in Czechia, Hungary, Slovakia, Serbia, and Bulgaria. It is well known that KBC is seeking further growth in Europe. About a year and a half ago, the bank attempted to acquire BRD, Romania’s second-largest bank, but that deal never materialized.
ABN AMRO, meanwhile, has been on the acquisition trail itself. Last summer, it completed the takeover of German bank Hauck Aufhäuser Lampe (HAL). As a result, Bethmann Bank, ABN AMRO’s wealth management arm in Germany, has become one of the country’s largest players serving high-net-worth individuals and family businesses.
The European banking sector has been in motion for some time, with many players looking for takeover opportunities. In June, a French bank acquired a Portuguese lender. Danish investment bank Saxo Bank is set to come largely under the control of Swiss private bank J. Safra Sarasin. In Italy, banks are attempting to acquire one another. In Germany, Commerzbank has long been eyed by Unicredit, Italy’s largest bank.
Steven van Rijswijk, CEO of Dutch bank ING, already stated last year that he sees opportunities for mergers and acquisitions in the European banking sector. According to him, there are too many banks on the continent with limited market shares.
