Mergers & Acquisitions
Mergers and acquisitions are a key element and by-product of credit markets and economics. Companies have a variety of motives for conducting mergers and acquisitions – some good, some questionable. Growth, competition and survival have long been the three major incentives for companies to merge. In 2007, a consortium led by Royal Bank of Scotland (RBS) acquired the Dutch bank ABN AMRO for $101 billion. In October 2008, as credit markets tightened, RBS received $35 billion in bailout money from the British government. In February 2009, the former Chairman of RBS had this to say: "We are sorry we bought ABN Amro. The deal was a bad mistake." The British government now owns 70% of RBS. In this section, CreditPulse provides coverage, analysis and perspective of mergers and acquisitions.