AMSTERDAM/FRANKFURT (Reuters) - Deutsche Bank AG (DBKGn.DE) agreed in principle to buy some ABN AMRO assets from the Dutch state in a deal which should clear the way for a merger of nationalized banks ABN and Fortis Bank Nederland.
Under the deal, 15 months and two ABN owners in the making, the acquisitive German lender will boost its Dutch operations by acquiring commercial bank HBU, 13 advisory branches, two corporate client units and a factoring business.
The pact, which is not final and depends on negotiations and a host of regulatory approvals, is the same in terms of assets as the deal Deutsche, Germany's biggest bank, agreed with former ABN owner Fortis in July 2008.
The European Commission mandated the sale of those assets in late 2007 to preserve competition in the Dutch market after a consortium took over ABN AMRO that year.
The financial terms of the proposed deal were not disclosed. The Dutch government said on Tuesday it will seek an extension of the EU deadline to finalize agreement. The commission had no immediate comment, and ABN AMRO said it could not comment beyond the finance ministry's statement.
The merger of ABN and Fortis, followed by an eventual IPO, is core to the Dutch state's exit strategy for the banks, which it nationalized in October 2008 for 16.8 billion euros ($25.16 billion).
DEUTSCHE OPPORTUNISTIC
Deutsche Bank said it does not intend to raise capital for the purchase of the assets.
Deutsche Bank CEO Josef Ackermann has recently urged his board to look for targets but cautioned them to be selective.
"Don't buy distressed assets, buy from distressed investors," he said.
Deutsche already has its eye on money manager Sal. Oppenheim and has a foot in the door at retail bank Deutsche Postbank (DPBGn.DE), where it holds a stake of just under 30 percent and the option of increasing that to a majority by 2012.
The Dutch acquisitions by Deutsche will make it the fourth-largest provider of corporate and investment banking services in the country, the bank said.
Konrad Becker, a banking analyst with Merck Finck & Co. said Deutsche's targeting of Dutch assets appeared opportunistic rather than signaling a shift in strategy.
"The original deal was struck at an attractive price for Deutsche and gives them a foothold in a business area they know well, lending and advising to small to medium sized companies," he said. "Key questions remain on pricing but Deutsche is in a strong position as conditions favor the seller given the pressure from the EU Commission."
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