StanChart to buy Amex Bank for USD 860 mn
StanChart to buy Amex Bank for USD 860 mn UK-based Standard Chartered has entered into an agreement to acquire American Express Bank (AEB), a unit of American Express Company, for USD 860 million, to strengthen its existing network and provide access to a select number of new growth markets. Additionally, the acquisition will include valuable branch licenses in India and Taiwan subject to regulatory approvals. The acquisition, which is subject to certain conditio ns, is expected to be completed in the first quarter of 2008. While, the integration is expected to take approximately 24 months to complete. AEB has operation in 47 countries and serves financial institutions and high net worth customers. AEB`s global correspondent banking business services approximately 1,700 banks in over 120 countries and its private bank services over 10,000 customers with total assets under management of around USD 22.5 billion as on Dec. 31, 2006.
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The deal will create a pre-tax cost savings in excess of USD 100 million a year from 2009 onwards, said Standard Chartered in a release.
