M&A in the Financial Services

2005

Outline

1. Abstract
2. Introduction
3. Body
3. 1 Reasons for acquisition
3. 2 Benefits for both parties
3. 3 Royal Bank of Scotland
3. 4 Shares
3. 5 Cooperation between Santander and RBS
3. 6 Potential growth benefit
3. 7 Santander and Abbey before acquisition
3. 8 Some problems remaining
4. Conclusion
5. References

The shareholders also have benefit from the acquisition: Abbey's shareholders have the opportunity to own a significant part of the Banco Santander. Under the terms of acquisition, Abbey shareholders receive one new Banco Santander share for every one Abbey share. The effective acquisition will result is existing shareholders of Banco Santander owning 76.4 percent of the issued shares of Banco Santander, and the corresponding 23.6 percent will be owned by the Abbey shareholders.

Introduction

Mergers and acquisitions in financial services business area are very common and result in consolidation of the business unit. Acquisition is beneficial for all sides involved and Santander's acquisition of Abbey National of the UK...