Standard Chartered completes acquisition of American Express Bank for $823 million
Acquisition adds capability and scale to the Financial Institutions and Private Banking businesses.
Standard Chartered welcomes American Express Bank employees
Hanoi, March 03, 2008 – Standard Chartered PLC announced on 29 February that it has received all the required approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American Express Company (AXP). The total cash consideration for the acquisition is US$ 823 million.
The acquisition of AEB provides Standard Chartered with an opportunity to add capability, scale and momentum in the strategically important Financial Institutions and Private Banking businesses. It will add 19 more markets to the Standard Chartered footprint, while deepening presence in some core markets and providing access to several new growth markets.
The addition of the AEB business will fast track the growth aspirations of The Standard Chartered Private Bank, building immediate capability and scale in people, product and processes. AEB will enhance Standard Chartered’s private banking presence in its key markets, leveraging on its exceptional advantage to grow market share and build scale in existing markets like Singapore, Hong Kong, India and The Middle East. It will also add capability in trust, fiduciary services, margin trading, and extend geographic reach with new booking centres in Geneva, Monaco, Miami, New York and London.
AEB will also help accelerate Standard Chartered’s Financial Institutions business and significantly enhance its capabilities in this core customer segment. This acquisition doubles Standard Chartered’s US Dollar clearing business reinforcing its position among the leading US Dollar clearing businesses and ranking the group sixth globally. In addition, AEB provides Standard Chartered with a direct Euro and Yen clearing capability. The extended geographic reach into new countries and deepening of Standard Chartered’s presence in key existing markets will capture more trade and investment flows.
Peter Sands, Group Chief Executive, Standard Chartered PLC said: “I welcome the American Express Bank employees into the Standard Chartered family. The AEB business brings along an exceptional management team and I look forward to them playing an important role in the Group.”
As part of the transaction Standard Chartered and AXP have entered into a put and call option under which AXP can sell and Standard Chartered can buy 100% of American Express International Deposit Company (AEIDC) 18 months from 29 February, 2008. The consideration payable to AXP will be the net asset value of AEIDC at the time of exercise of the option.
The integration is expected to take approximately 24 months.
American Express Bank Ltd.
American Express Bank Ltd.is the international banking subsidiary of American Express Company. Founded in 1919, it provides services to financial institutions, high net worth individuals and affluent customers through more than 74 locations in 47 countries.
American Express International Deposit Company
American Express International Deposit Company is based in the Cayman Islands and issues short-term, fixed rate certificates of deposit to AEB customers.