Belgo-Dutch Fortis in JV talks with Irish Post Office
Belgian-Dutch banking and insurance group Fortis has started exclusive negotiations with the Irish Post Office, An Post, about an establishment of a financial services joint venture, Fortis said on February 14, 2006 in a press release.
According to Fortis, this step is based on the group's 10-year experience with the Belgian
Post in the successful creation of the joint venture Banque de la Poste.
The planned joint venture is in line with Fortis' strategy to further expand in Europe, particularly in growth markets such as Ireland, and to capitalise on the win-win joint venture model it has developed internationally in bancassurance.
Fortis is confident that the company and An Post can jointly strengthen the offer, increasing the choice of the Irish customer for bank and insurance products, said Jos Clijsters, CEO of Fortis Retail Banking. According to Clijsters, An Post is a well-known brand with a large network, a dynamic management and a customer-oriented organisation.
Fortis (www.fortis.com) said it would make no further comment on the negotiation process.
(Editor's note: The abstract is based on information published by Het Financieele Dagblad and Fortis on February 14, 2006.)
www.fortis.nl,www.fd.nl
An Post may sever AIB ties and opt for Fortis
European Intelligence WireIrish IndependentIrish Independent 02-16-2006
Jim Aughney
THE future of AIB's contract with An Post is expected to be re-examined following the announcement that top European financial institution Fortis is in 'exclusive negotiations' with the post office to create a new financial services joint venture which could entail a 200m investment.
An Post currently has a contract with AIB to provide lodgment and withdrawal facilities for AIB customers at 1,000 computerised post offices around the country.
The contract has been in place for just over four years and has allowed AIB to meet increased demand for lodgments and withdrawals without expanding its own branch network significantly.
It has also been one of the strongest revenue streams for An Post in its expanding basket of financial services which includes processing of Savings Certs and Bonds for NTMA and home and motor insurance payments for its wholly-owned One Direct subsidiary.
The renewal of the AIB contract for An Post is now expected to be closely examined when it comes up within the next twelve months following the bank's failure to become An Post's joint venture partner after reaching the last four.
The new Fortis joint venture hopes to be offering financial services such as bancassurance at the same 1,000 top post office outlets as used for AIB services by early next year.
The development of a financial services model was one of the key elements of the strategic recovery plan for An Post announced in September 2003 by chief executive Donal Curtin, who is due to retire in July.
Analysts expect the Fortis move to heighten competition in financial services in this country, resulting in erosion of the margins enjoyed by the current large players.
Having secured Government approval for the joint venture, An Post and Fortis must now work out the size of their shareholdings in the new company and the kind of services which they want to offer.
The joint venture will be based on Fortis's ten-year experience with the Belgian Post Office in the successful creation of the joint venture 'Banque de la Poste'. The planned joint venture is in line with its strategy to further expand in Europe.
Fortis already provides retail-banking services in France, Poland and Turkey and successfully combines its banking and insurance expertise in growth markets in Europe and Asia.
