Rothschild and ABN Amro have today announced their partnership in equity capital markets over the last eleven years is to be allowed to come to an end before 2008, as a result of the acquisition of ABN Amro’s investment banking business by the Royal Bank of Scotland.
The pair have teamed up over the period through ABN Amro Rothschild, a joint venture entity which has traded in equity markets as part of the wider investment banking operations shared by the two organisations.
However with the acquisition by RBS the situation has had to be reexamined, with the outcome being the decision to allow the relationship to expire before the start of calendar year 2008 as the investment banking division of ABN Amro becomes more integrated within the current RBS corporate structure.
Whilst the banks will cease working on any new business together as of the end of the year, they will obviously continue to see out existing contracts until they naturally expire, before completely severing business ties altogether.
Speaking today on the move, a spokesperson from ABN Amro said that whilst the venutre had been particularly successful throughout its eleven year history, working on a number of high profile profitable projects, the time had come for a re-evaluation of the relationship, instigated by the change of ownership of the Dutch bank.
ABN Amro was acquired by an RBS led consortium several months ago, in a move that was designed to split up its business into separate distinct divisions for the benefit of its new collective owners.
As a result, the bank has undergone significant change in a number of areas, as the Royal Bank looks to move away from the previous relationships held with the Dutch bank to more modern partnerships.