Mega Deal: Barclays to Buy ABN AMRO for $91 billion; Bank of America Involved

Barclays has agreed to buy out its Dutch rival, ABN AMRO.  And it will only set the bank back $91 billion.  You probably bought two ABN AMROs on your way in to work this morning.  I know I sure did.

As part of the merger, both banks have agreed to sell ABN AMROs U.S. bank presence, LaSalle, to Bank of America.  For $21 billion.  I know.  Billion is the new million, apparently.

The deal is one of the biggest cross-border combinations in European banking history.

ABN AMRO shareholders come out pretty sweet in the deal, too.  Shareholders will receive 3.225 ordinary shares in Barclays for each existing ABN AMRO ordinary share.

John Varley, the CEO of Barclays, said, "This proposed merger represents a unique opportunity to create a new competitive force in financial services, which will deliver benefits for our customers and clients and generate sustained growth and additional value for our owners. The proposed merger will significantly enhance stand-alone product development capabilities and distribution. Our combined geographic reach will ensure exposure to both developed and high growth developing economies."