Source: ABN Amro
Mellon Bank N.A. has agreed to purchase ABN Amro's 50% share in ABN Amro Mellon Global Securities Services B.V., the joint venture company established by the shareholders in 2003 to provide global custody and related services to institutions outside North America.
The transaction - which is subject to certain conditions including regulatory and other approvals - is expected to close during Q3 2007, whereupon ABN AMRO Mellon will become a part of The Bank of New York Mellon Corporation, the new company created by the merger of The Bank of New York Company and Mellon Financial Corporation. Terms of the transaction were not disclosed.
Nadine Chakar, CEO of ABN AMRO Mellon, said: "This is a landmark day for ABN AMRO Mellon, which since its inception has continually raised the bar - and clients' expectations - when it comes to delivering service excellence and product innovation. As part of The Bank of New York Mellon Corp. we will continue to provide our clients and staff with exciting new opportunities within the asset servicing sphere.
"Following its decision to merge with The Bank of New York, Mellon was keen to explore the possibility of taking full ownership of ABN AMRO Mellon. Both shareholders are in agreement that LODB01 37459002.2 such a change of ownership is in the best interests of the JV and its clients. ABN AMRO remains one of our most important clients - we will continue to be ABN AMRO's preferred provider."
Chakar will retain her responsibilities as CEO of ABN AMRO Mellon in tandem with her new role within The Bank of New York Mellon, where she will be Head of EMEA for the BNY Mellon Asset Servicing group. The ABN AMRO Mellon Managing Board will likewise remain in place.
She added: "From the outset the JV was structured to avoid disruption in the event of any change of ownership. Accordingly, ABN AMRO Mellon's focus on our clients will not waver, and we will maintain the highest degree of operational continuity as we take our business to the next level. Relationships with existing clients will not change, with client-facing staff retaining their current roles supporting the same clients."