HELSINKI: The move to merge the Nordea bank with the Dutch bank ABN has been foiled as the Dutch government rejected the proposal, according to Dutch newspaper NRC. The Dutch government was the final authority to take decision in this regard as 77 percent stake of the ABN Amro is owned by the Dutch government.
The chair of Nordea’s board Björn Wahlroos would have made an offer through share exchange, said the report. Nordea which is the major of the two parties would have transferred its headquarters to the Netherlands. According to the newspaper, Wahlroos wanted to return Nordea to the Euro zone. Timo Rothovius, a Professor of the department of Accounting and Finance at the University of Vaasa said that despite the fact that the deal was not successful, it may very well go through in the future.
“Certainly, it may well become a reality. The question above all is the price, that is, the exchange rate. The second question is whether (Björn) Wahlroos is willing to pay much,” Rothovius told news agency STT. Wahlroos, who is the chair of Nordea’s board as well as its largest shareholder, oversaw the transformation of Nordea in Finland into a subsidiary and transfer under Swedish banking supervision.
