AMSTERDAM, Netherlands (AP) – Dutch bank ABN Amro Holdings NV said Wednesday that it has reached a preliminary agreement to sell its U.S.-based trade execution and clearing services business toMerrill Lynch & Co. for an undisclosed sum.
In a statement, ABN said the companies hope to finalize the sale of its professional brokerage business in January and close the deal in the second quarter of 2004. The professional brokerage business provides securities trading, clearing and other back-office services for the options and securities markets.
A Merrill Lynch spokesman confirmed that a preliminary agreement had been reached, but declined to be more specific.
ABN said it does not expect any impact on earnings as a result of the sale. In November, it said it expects full year profits of around euro3 billion – roughly $3.77 billion – in 2003.
The company said it was selling the brokerage operations in order to focus on larger, “wholesale” clients.
Earlier this month, ABN completed the sale of its U.S.-based Prime Brokerage Unit to UBS. That unit provided securities trading, clearing and trade execution services to hedge funds.
