ABN AMRO bank breaks vicious cycle: HRM leveraged in best‐practice partnership

Abstract

Purpose

This paper aims to examine why and how HRM may take on a more strategic role in mergers and acquisitions.

Design/methodology/approach

Discusses Dutch bank ABN AMRO's acquisition of one of the largest Brazilian banks (Banco Real) and, later, the Brazilian subsidiary of an Italian bank (Banco Sudameris).

Findings

Highlights major differences in the two acquisitions, but also the common agreement that top management of the acquiring and acquired companies must fully understand the vital role of employees in the M&A process.

Practical implications

Contends that the team or executive leading the post‐acquisition process should establish the most appropriate policies, including those for HRM, so that the results of the chosen integration strategy result in value creation.

Originality/value

Demonstrates that a major challenge in acquisition processes that adopt different integration strategies is to match the reason that determines the acquisition, the integration strategy and the management of people.

Citation

(2008), "ABN AMRO bank breaks vicious cycle: HRM leveraged in best‐practice partnership", Human Resource Management International Digest, Vol. 16 No. 4, pp. 14-16. https://doi.org/10.1108/09670730810878420