Britain’s Barclays bank has made an agreement on a merger with ABN Amro, BBC radio reported on Monday morning at around 7.30 am. The move, which was widely expected, will create one of Europe’s largest banks with sales of over 90 billion pounds sterling, the BBC said.

However, ABN Amro has also agreed to talks with the Royal Bank of Scotland on a rival offer, according to the BBC. Some analysts believe this bank is prepared to offer more for the Dutch bank.
According to the Sunday Times, the Royal Bank of Scotland has abandoned its consortium bid for ABN Amro and will mount a solo attempt to acquire the Dutch bank (see story Sunday 22 April).