Non-listed cooperative bank Rabobank is to take over the Friesland Bank, the two financial services groups said on Monday.
Friesland will become a 100% subsidiary of Rabobank and the transition period will take some two years, the statement said. Jobs are guaranteed for that period.
The banks say the current economic crisis means Friesland is holding much more expensive liquidity than it would under normal market conditions and this is pressuring its results. The impact of new rules on bank capitalisation is also an uncertain factor.
While the Friesland ‘has operated extremely successfully… in recent years, this does not sufficiently offset the combination of the aforementioned effects,’ the statement said. Research has shown ‘striving for the continued independent existence of Friesland Bank is no longer responsible towards its customers and employees’.
The takeover has already been given preliminary approval by the competition authority NMa. Rabobank is the Netherlands’ biggest mortgage bank.