The propsed merger of ABN Amro with Barclays seems to be having too many complications to be completed easily and soon. This article explores the proposed deal between Barclays and ABN Amro. It then highlights a few developments that seem to have a bearing on the direction of the outcome of the proposed merger.

"This proposed merger fits well with our strategic objective to provide significant and sustained value for our shareholders. We believe that merging with Barclays will unite our significant complementary strengths and create long-term value for our shareholders. I am excited about the opportunities this merger brings and look forward to the next phase of ABN AMRO's future."The banking industry, worldwide, is being reshaped by occasional Mergers and Acquisitions (M&A). This further has led to a consolidation of the financial services industry worldwide. Bank Tokyo and Mitsubishi Bank which is now known as Bank of Tokyo Mitsubishi combined to form one of the largest banks of the world.

Citicorp's merger with Travellers Insurance Inc., created one of the largest financial service providers in the world. The recently announced merger between Barclays and ABN AMRO has the potential to trigger the next wave of bank consolidation. The Barclays-ABN deal is part of a broad shift towards a more competitive European banking industry. John Varley, CEO of Barclays, says, "This proposed merger represents a unique opportunity to create a new competitive force in financial services, which will deliver the 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."

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