M&A: Flying Dutchmen
ABN Amro is embroiled in its own M&A battle but that has not stopped the bank’s investment banking arm closing some landmark deals for clients.
In July, along with UBS, the Dutch bank raised $3.2 billion in leveraged finance for Indian metals group Hindalco Industries to part fund the $6 billion acquisition of aluminium-rolling group Novelis of Canada. The financing structure entailed a $800 million asset-based revolving credit facility, a $960 million term loan and a $1.4 billion high-yield bridge backstop. The deal is the largest ever acquisition in North America by an Indian company and follows a growing trend for Indian companies to invest in developed western markets. The prime example of this trend was Tata Steel’s acquisition of Anglo-Dutch steel company Corus, a deal in which ABN Amro also played a key role.