The world is about to get another massive Anglo-Dutch company added to its ranks. Last night, Barclays
The combined Barclays and ABN Amro will be among one of the 10 largest banks in the world, one of the largest credit card issuers, and the largest institutional asset manager in the world. The combined firm will also join Income Investor selection Unilever
As a part of the deal, ABN Amro will sell its LaSalle Bank operations to Bank of America
The sale of LaSalle also makes ABN Amro less attractive to the consortium of Royal Bank of Scotland (OTC BB: RBSPY.PK), Fortis, and Banco Santander Central Hispano
In general, I'm not a huge fan of large banks, because their sheer size makes them difficult to manage and slow to respond to competitive threats. However, because of the large asset-management business the combined Barclays and ABN Amro will have, I'm a bit curious to see how this deal works out and whether the pair can overcome the size problem that has befuddled a number of banks.
At the time of publication, Nathan Parmelee had no financial interest in any of the companies mentioned. Bank of America is a Motley Fool Income Investor selection. The Motley Fool has an ironclad disclosure policy.