Butterfield to acquire ABN AMRO Channel Islands for $208m

The Bank of N.T. Butterfield & Son has agreed to acquire ABN AMRO Bank’s Channel Islands-based banking business for about £161m ($208m) in an all-cash deal.

The Bermuda-based Butterfield expects the acquisition of ABN AMRO Channel Islands to create an organization with a broadened and diversified offering, and the ability to cater to a broader range of clients across the world.

The offshore bank and trust company also expects the acquisition to significantly grow its footprint in Guernsey and Jersey. The transaction will be carried out through its subsidiary Butterfield Bank (Guernsey).

Butterfield chairman and CEO Michael Collins said: “This acquisition is another important step in our strategy to grow through acquisitions in the highest quality offshore markets where we have scale and expertise. It underscores our continuing commitment to expand Butterfield’s presence in the Channel Islands and the importance of these two jurisdictions to our multinational clients.”

ABN AMRO Channel Islands provides banking, investment management and custody products to trusts, private clients, and funds. As of 31 December 2018, the bank had £2.9bn in deposits and £3.5bn in assets under management and custody.

The transaction is expected to benefit the ABN AMRO subsidiary with a more extensive loan product offering and the scope to extend its services to the private equity and insurance sectors.

ABN AMRO Private Banking CEO Pieter van Mierlo said: “As communicated at our Investor Day in November 2018, in private banking we focus on onshore private banking, pursuing organic and inorganic growth in our core markets. We concluded that the transfer of our activities in Channel Islands to Butterfield would be a logical fit with this strategy and in the best interest of clients and staff.”

Subject to the satisfaction of customary closing conditions including receipt of regulatory approvals, the transaction is expected to be completed during the third quarter of 2019.