Barclays merger to create fifth largest banking empire

Barclays and Dutch group ABN Amro said today they had agreed to merge in a deal set to create the world’s fifth largest banking group.

The tie-up will see Barclays shareholders own a 52% stake in the new business, which will be called Barclays but headquartered in Amsterdam.

The pair said the combination would result in around 12,800 job cuts, while around 10,800 positions will be transferred to low-cost locations. The two companies currently have a combined workforce of 217,000.

The proposed tie-up could still be threatened by a counter-bid from Royal Bank of Scotland, which has been working on possible deal in conjunction with Spain’s Santander and Fortis of Belgium.