National Australia Bank, Australia's largest bank and parent of National Irish Bank, has sold its Michigan National Corp Bank to Holland's ABN AMRO Bank for $2.75 billion.
Analysts believe NAB is now concentrating on growth in Britain and Ireland, rather than major investment to get the scale it needs to be competitive in the US. The bank says it will use part of the sale proceeds to expand in both Ireland and Britain.
There had been speculation that NAB would try to get involved in a proposed merger between Bank of Scotland and Abbey National, though some commentators see a move for a smaller bank, such as Alliance & Leicester,
Today's move by ABN AMRO - Europe's 12th largest financial institution - was designed to consolidate its position in the lucrative US midwestern market and makes the Dutch group the largest foreign commercial bank in the US.
