The Hindu : Business : StanChart to acquire American Express Bank

Online edition of India's National Newspaper
Wednesday, Sep 19, 2007
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StanChart to acquire American Express Bank

LONDON: Standard Chartered Plc on Tuesday reached an agreement to acquire the U.S.-based American Express Bank for about 431 million pounds ($860 million) in cash — a deal that would give the British banking major additional branch licences in India.

StanChart said in a statement that it had agreed to acquire American Express Bank from American Express Company for a total cash consideration equal to the net asset value of AEB at completion plus $300 million in cash.

$860 m deal

As of June 30, 2007, this would have amounted to about $860 million, it said.

AEB, whose New York-based parent company AXP is the third-largest credit card network, is a leading international bank present in 47 countries, including India.

The acquisition, which is subject to certain conditions, including regulatory consents, is expected to be completed in the first quarter of 2008. StanChart said that AEB provided it with an opportunity to add capability, scale and momentum in the strategically important financial institutions and private bank businesses.

Among other benefits, “the acquisition will include valuable branch licences in India and Taiwan subject to regulatory approvals,” it said.

According to the data released by Reserve Bank of India, Standard Chartered is the largest foreign bank in India in terms of branches with a total of 81 branches, as against American Express Bank’s seven branches as of September 2006 out of total 258 branches of 29 foreign banks. — PTI

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