Barclays merger threatens 12,800 jobs

Updated 08.16 Mon Apr 23 2007

Keywords: jobs, ABN Amro, Barclays

Around 12,800 jobs are at risk as Barclays and Dutch group ABN Amro agree merger terms to create the world's fifth largest banking group.

The €67 billion (£45.6 billion) tie-up will see Barclays shareholders own a 52 per cent stake in the new business which will be called Barclays but headquartered in Amsterdam.

The proposed tie-up could still be threatened by a counter-bid from a consortium led by the Royal Bank of Scotland

The pair, whose combined workforce is 217,000, said around 10,800 positions will be transferred to low-cost locations.

However, the proposed tie-up could still be threatened by a counter-bid from a consortium led by the Royal Bank of Scotland.

The banks have agreed to sell ABN's Chicago-based US bank LaSalle to Bank of America for $21 billion (£10.5 billion) following the merger.

Barclays Chief Executive John Varley and President Bob Diamond will have the same positions in the enlarged group and ABN's Arthur Martinez will be chairman.

Barclays said the combination will result in annual pre-tax synergy benefits of about €3.5 billion (£2.38 billion) by 2010.