Standard Chartered Bank's Acquisition of American Express Bank (A)

            
 
Case Studies | Cases in Business, Management, Cases | Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR347
Case Length : 18 Pages
Period : 2007
Pub Date : 2009
Teaching Note :Not Available
Organization : Standard Chartered Bank / American Express Bank
Industry : Banking / Financial Services
Countries : UK, USA

To download Standard Chartered Bank's Acquisition of American Express Bank (A) case study (Case Code: BSTR347) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies



Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

Introduction Contd...

This was the biggest acquisition made by StanChart since September 2006 when it had acquired Taiwan's Hsinchu International Bank for US$ 1.3 billion. Analysts were of the view that the AEB deal fit in well both strategically and financially with StanChart's operations.

Cubillas Ding, an analyst at Celent5, opined, "The deal appears to be defensive against the likes of UBS, Credit Suisse, and City Group Inc., which are focusing their private banking businesses on Asia aggressively." Lehman Brothers6 reiterated its ‘overweight' rating for StanChart as its traditional banking and private banking business were expected to benefit from the acquisition.7

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

For American Express, this deal signified divestment from their non-core business and a greater focus on their core businesses - credit card and travel payment. Analysts at Citigroup8 opined that with the sale of AEB, American Express could free up its investments, to invest in high return businesses.

 Excerpts >>

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


5] Celent is a Boston, US-based research and consulting firm focuses on the application of information technology in the global financial services industry. It provides research and consultancy services to the clients.
6] Lehman Brothers is a global financial services company, involved in activities like investment banking, investment management, private equity, private banking, equity and fixed income sales, and other activities. In 2006, the company's revenue was at US$ 46.709 billion and profits stood at US$ 4 billion. On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy because of losses incurred due to exposure in subprime assets.
7] "Standard Chartered Acquisition of American Express Bank," www.industrywatch.com, September 18, 2007.
8] Citigroup Inc., US-based financial services company, is the largest company in the world as of March 2007, according to Forbes Global 2000. Citigroup was formed from the merger of Citicorp and Travelers Group in 1998. In 2007, its revenue stood at US$ 81.70 billion and net income was at US$ 3.62 billion.


Custom Search





Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

Business Strategy
Workbooks Collection

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.