strategy organization
Organizingthe merger
Clear future
Member banks and their clients
SRT implementation
Bigger picture
4 What's NewS Issue 9 October/November 1999
>- RI,' Toebosch says. 'By joining forces
witli DG, we get new access to a large
German cliënt base that is operating
cross-border. RI bas a more extensive in
ternational network - we're in more places
than DG. There are, of course, a number
of locations where we both have a strong
presence - major financial centres such as
New York, London, Tokyo, Hong Kong,
Singapore. Those activities will be inte-
grated as part of the whole process.' He is
loathe to speak in terms of 'them and us',
hut it is clear he is excited by the prospect
of more market and
business potential for the
joint venture.
combination of such activities as interna
tional private banking, asset management,
and leasing. 'Rabobank and DG Bank are
talking about how we can deliver this
kind of product to our customers,'
Toebosch confirms. Note that he talks
here about Rabobank as opposed to RI.
This, he says, is because you have to see
much of what we could and will do with
DG Bank in terms of a broader context.
'The delivery of products and services like
these is part of the multi-domesticity
discussion and how we can best apply it
Business modules
DG
Capital Markets/
Treasury
Norbert Brauer
Rabobank Jonathan Laredo
BCG
consultant
Support modules
DG
IT/operations1
JensWirsching
Rabobank AiainYounes
Project office - Platform modules
The downside, of course,
is that at least one RI of
fice will certainly disap-
pear from the network
charts: Frankfurt. In re
cent years, the structure
of RI in Germany has
been changing almost
continually. Now, the in-
tegration of our activities
in the German market
with those of DG Bank
mean our people will
have a much clearer idea
of the future, perhaps for
the first time in years.
But there is still downsiz-
ing to be done before
RI's people either move
to another location
within the new venture
or pursue their careers
with other institutions.
The good news is that
our commitment to food
and agribusiness as a
global focus is con-
firmed, also for the new
joint venture. Toebosch
adds: 'You also have to
remember that DG has
its own areas of specialization and
expertise, such as energy and telecom.
So the international finance business
module will obviously comprise these as
well. If we are successful in these sectors
in Europe, then you could see us rolling
out globally.'
Possible global roll-outs are a longer-term
goal. Nearer in timescale is the potential
Steering committee - DG Bank/Rabobank
Rabobank DG BCG
Hans Smits Bernd Thiemann Hans-Paul Buerkner
Rik van Slingelandt Friedbert Malt Mirko Nikolic
Wim van den Goorbergh Johann-Rudolf Flesch
Arnold Kuijpers Klaus-Detlef Marquardt
Business Integration (BI) Management
r Rabobank
Ton Toebosch
i Bruce Tozer
DG
Uwe E.FIach
Stephan Rey
by Toebosch to illustrate the contplexity
of 'the higger picture'. 'The idea of equal-
ity has run like a leit motiv through every-
thing we have and will be doing with
DG,' he says. 'However, I cannot stress
enough that there are so many aspects to
this integration that are not immediately
visible. When you talk about where to
locate your "head office", you are not
simplv looking for a "neutral" place.
There are numerous factors which have to
be taken into account - legal, fiscal, regu-
latory. Or, how for instance the rating
agencies, German regulatory
authorities, or our own regu
latory authorities will react?
Where is "neutral" if, say,
there is a chance other Euro-
pean banks decide to join at^
some stage in the future.'
BCG
Hans Paul Buerkner
Mirko Nikolic
Equity/
International M&A
Rolf Michael Betz
Structured Finance
Heinz-Werner Sichler
Andries Mak van Waay Wouter Kolff
International finance
(ind. international network)
Alfred Legner2
Hans W. Meyers
Clemens B. Wendland
Thomas Kettern
Gijs van der Schrieck2
Reinier Mesritz
Henri Jacquand
Cor Broekhuyse
consultant
consultant
consultant
Finance/
control and risk
Reinhard Kutscher^
Detlef Müller5
Alison Straszweski2
Alfons de Weerdt5
consultant
HR database
Research
Jürgen Müller Methling Karl Eugen Reis
Mare Hoodless Hung Tran
consultant
consultant6
DG
Rabobank
BCG
DG
Rabobank
BCG
Communication
Klaus-Detlef Marquardt
Roel van Veggel
consultant
Org.design/HR
Jürgen Müller-Methling
Mare Hoodless
consultant
Culture Target setting
Mechtild Schepers-Dellwig Ursula-lrene Arlt
Frans van Bijsterveld
consultant
Legal 7
Reinhard Nützel
Willibrord van Nierop
Alison Straszweski
consultant
Fiscal
Heinz-Günther Mussel
Eduard Sartorius
to customers in each partner's domestic
market,' he says. 'The new joint venture
has a challenging task to provide specific
products to member banks and their
clients through service agreentents.'
The implications of what appears to be a
fairly simple, though obviously sensitive,
decision on where to locate the official
residence of the new joint venture is used
T he timeline for the decision
on where "head office" will
be located is scheduled be
fore year-end 1999, so the
members of the steering com
mittee comprising executive
board members from both
banks have their work cut
out for them. On the rating
issue, which has always been
so crucial in our activities,
we will have to wait a little
longer. There is no expecta-
tion that the merger will
affect Rabobank's triple-A.
The partners are involved infl
ongoing discussions with the
rating agencies on how
DG-Rabo International will
be rated. I.ike everything else
relating to the new joint
venture, the rating is in the
pipeline (decision is expected
in the second quarter of
2000). But Flach and
Toebosch both emphasize
that even though speeding up
the integration process is their main prior-
ity, it is not the only one. 'Everything that
is happening on the merger is very excit-
ing,' Toebosch agrees. 'But can I stress
here that we have recently completed an
extensive strategie review within RI.
The results have to be implemented. The
worst thing now would be if we feil into
vacuum, waiting for something to happei™
We cannot allow mission drift in any of
our activites. So the bottom line is:
business as usual, or better!'
7 Boston Consulting Group
2 spokesperson
3 indudes infrastructure
4 specific responsibility for market risk
5 specific responsibility for credit risk
6 capital markets/treasury
7 indudes compliance
