Sorry for the lack of posts recently. I’ve been on holiday and then having to do my day job for a while.
Barclays has just announced that its proposed deal with ABN Amro will see the company’s headquarters move to Amsterdam. Despite being the dominant partner in the merger, the company’s chief executive and other senior managers will relocate to the Netherlands.
This strikes me as odd. Most foreign banks buy UK companies so that they can get into the City of London, with its skilled workforce and international trading environment. Why would a British bank buy a Dutch one then move all its senior people out of London? Perhaps this is just part of the horse-trading that usually goes on around mergers. The relocation to Amsterdam could just be a way of enabling ABN Amro to save face.
Whatever the reason, dragging bankers away from the City might not be a popular move. Barclays could lose some key people in the process.