Barclays to buy Netherlands' ABN for euro67 billion

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Barclays PLC said Monday it agreed to buy the Netherlands' ABN Amro Holding NV for euro67 billion ($91.16 billion) in the largest ever takeover in banking history.

Barclays offered euro36.25 (US$49.25) for each ABN share, slightly lower than Friday's closing price of euro36.29 (US$49.38), along with 3.225 ordinary shares, the banks said.

As part of the deal, ABN will sell its U.S. unit LaSalle Bank to Bank of America Corp. for US$21 billion (euro15.45 billion) in cash. "The proposed merger of ABN Amro and Barclays will create a strong and competitive combination for its clients with superior products and extensive distribution," the banks said in a statement.

The merger will create a bank, headquartered in Amsterdam, with 47 million customers worldwide. The combined entity expects to save euro3.5 billion ($4.8 billion) annually by 2010.

Some 12,800 jobs will be trimmed from a work force of 217,000. Barclays' John Varley will be the chief executive officer, and Bob Diamond will be president. The merger was expected to be completed during the fourth quarter of this year, the banks said.