The Bermuda-headquartered Butterfield Bank today announced that it has entered into a “definitive agreement” to acquire a Channel Islands-based banking business.
In a filing with the Bermuda Stock Exchange, the offshore bank and trust company said it would shell out approximately US$208 million in cash to take over ABN AMRO [Channel Islands] Limited, the banking business of ABN AMRO Bank N.V., through its wholly owned subsidiary, Butterfield Bank [Guernsey] Limited.
The deal is expected to close during the third quarter of this year, subject to regulatory and other customary closing conditions. After the closing, ABN AMRO Channel Islands business and employees will be integrated with the existing Butterfield Guernsey operations and operate under the Butterfield name.
Butterfield said the transaction combines two leading banking operations in the Channel Islands to create an organization with a widened and diversified offering, as well as the ability to service a broader array of clients around the globe.
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, said ABN AMRO Channel Islands was an ideal partner through which to expand the bank’s core Channel Islands banking business.
“This acquisition is another important step in our strategy to grow through acquisitions in the highest quality offshore markets where we have scale and expertise,” he said.
“It underscores our continuing commitment to expand Butterfield’s presence in the Channel Islands and the importance of these two jurisdictions to our multinational clients. ABN AMRO Channel Islands brings a conservative risk management culture, similar to that of Butterfield, and will contribute both management talent and sales expertise to our combined business.
“This represents an excellent opportunity for clients and employees, and we look forward to welcoming our new colleagues to Butterfield.”
Established in Guernsey for over 35 years, ABN AMRO Channel Islands offers banking, investment management and custody products to three distinct client segments, including trusts, private clients, and funds.
Source: Caribbean 360