Keen to invest in the rapidly expanding mass affluent market Abbey National will pay approximatel...
Keen to invest in the rapidly expanding mass affluent market Abbey National will pay approximately £106 million to buy Fleming Premier Banking.
Abbey National will buy the bank through its subsidiary Cater Allen Ltd, and may later merge the Fleming and Cater Allen divisions as one.
The acquisition will increase Abbey National's market share in the growing premier banking sector - which caters for those with incomes of between £30,000 and £100,000 - from 3% to 16%.
It will add £1.5 billion of depositions and 110,000 clients to Cater Allen's £1 billion and 26,000 clients.
Fleming Premier Banking will initially be run alongside Cater Allen, but in the medium term the two will be combined. The two companies operate in the same markets, offering current and savings accounts to the mass affluent market and small businesses. Both deal direct with clients and have particularly strong relationships with third party introducers.
Abbey National's profits from wealth management business grew by 36% in 2000. Mac Millington, managing director, business to consumer banking, Abbey National, says acquiring Fleming Premier Banking will allow the company to deliver its strategy more quickly.
Fleming Premier Banking was put up for sale following J.P.Morgan Chase and Co's decision not to remain in the UK retail banking market. This follows its purchase of the Flemings group last August. The J.P.Morgan private bank continues to deal specifically with high net worth individuals, families and trusts.
The deal is expected to be completed in July.
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