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Barclays strengthens bid for ABN Amro

Barclays has entered into a £9bn deal with China Development Bank and the Singapore government to boost its bid for the takeover of Dutch group ABN Amro.

The Board of Directors of Barclays announced an investment by China Development Bank and the Singapore government’s investment arm, Temasek, of up to £9bn in Barclays through the subscription of new shares.

China Development Bank will become a major shareholder in Barclays and will subscribe an initial £1.5 billion of new ordinary shares and, subject to regulatory approval and completion of the revised offer for ABN AMRO, up to a further £5.1bn.

Temasek will subscribe £1.0bn of Barclays new ordinary shares, followed by £1.5bn additional shares upon the completion of the revised offer for ABN AMRO.

Barclays has now submitted a revised offer to the managing and supervisory boards of ABN AMRO of £45.4 billion, with approximately 37 per cent in cash.

Barclays CEO John Varley says: “Today’s announcement represents an important new step in the continued transformation of Barclays towards our stated ambition to be one of the world’s leading universal banks. Through the introduction of two highly respected shareholders, from whom we will derive support and advice, we will be able to drive our future development in the rapidly growing Asian markets. We are delighted that China Development Bank and Temasek have chosen to invest in Barclays and this reflects their confidence in our growth strategy.

“We have announced a restructuring of our proposed offer for ABN AMRO that represents an improved deal for both Barclays and ABN AMRO shareholders and introduces a significant element of cash and a greater opportunity to share in future value generation.”

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