French banking major BNP Paribas today said it will acquire beleaguered Fortis' Belgium and Luxembourg operations as well as the international franchises for an estimated 14.5 billion euro.
The latest sale of assets of Fortis which has been battered by the ongoing credit crisis, follows the buyout of the Belgian major's Dutch operations by the Netherlands government for 16.8 billion euro.
In a statement issued today, the French firm said the 14.5 billion euro buyout comprises nine billion in stock and another 5.5 billion in cash. Further, the state of Belgium and the state of Luxembourg would become significant shareholders of BNP Paribas.
As part of the deal, BNP Paribas would acquire 1,458 branches located in Belgium, Luxembourg, and all other countries except the Netherlands (including Poland, Turkey and France) and the Fintro branch network in Belgium.
In addition, the French major would buyout Fortis' insurance business in Belgium, investment management activities which includes former ABN Amro Asset Management, private banking, merchant banking and consumer finance activities, all the three outside the Netherlands.
Fortis' fortunes took a beating in the ongoing financial turmoil after it had snapped up a substantial stake in ABN Amro.
On October 3, Fortis said the Netherlands government has snapped up Fortis Bank Nederland (Holding) N V including the participation in RFS Holdings B V that represents the acquired activities of ABN AMRO, Fortis Verzekeringen Nederland N V, and Fortis Corporate Insurance N V.
