ABN Amro Bank has signed an agreement for the sale of its Channel Islands operations to Butterfield Bank.
The proposed transaction, which is still subject to regulatory approvals, is expected to close before the end of Q3 2019. The aggregate purchase price is reported to be £161m in cash ($208m), subject to certain purchase price adjustments.
Pieter van Mierlo, CEO of ABN Amro Private Banking, said: "In private banking, we focus on onshore private banking, pursuing organic and inorganic growth in our core markets. We concluded that the transfer of our activities in the Channel Islands to Butterfield would be a logical fit with this strategy and in the best interest of clients and staff.”
With the addition of ABN Amro Channel Islands, Butterfield will significantly expand its presence in the Channel Islands – ABN Amro Channel Islands manages more than €7bn in client assets.
Michael Collins, Butterfield’s Chairman and CEO, commented: “This acquisition underscores our commitment to expand Butterfield’s presence in the Channel Islands and the importance of these two jurisdictions to our multinational clients.”
After the closing, ABN Amro Channel Islands business and employees will be integrated with Butterfield's Guernsey operations and will operate under the Butterfield name.
Goldman Sachs & Co is financial adviser to Butterfield and Sullivan & Cromwell is legal counsel. Rothschild & Co is serving as financial adviser to ABN Amro and Allen & Overy is legal counsel.