Growing in California 12 December 2002 marked the formal approval of a process to acquire 100% of VIB Corps common stock by the Rabobank Group in an all cash transaction. On that date, all necessary regulatory approvals - from the Dutch Ministry of Finance, the Federal Reserve Board and the California Department of Financial Institutions - were on the table. A week earlier, shareholders had given their approval for the deal which will open up the world's largest agri-producing region for Rabobank. On 28 December the acquisition was completed and VIB became a full member of Rabobank.The Word looks at our latest entry into 'country banking'. Big numbers Huge market Milestone dates always grab attention. However, the mile- stones for the launch of 'country banking' in the US are no more than datelines in what has been a lengthy process, started back in 2001. Says Cor Broekhuijse, who launched the concept in Australia through the Primary Industries Bank of Australia (PIBA), and who was appointed Regional Manager Americas on 1 September 2001'Given my experi- ence with PIBA, "country or com- munity banking" was high on my priority list. The Managing Board was convinced the US would offer a very attractive market for us, so we started looking at ways to get into the agri-production business here.' Broekhuijse hired an investment bank with specific expertise in finding likely acquisition prospects. And he brought in Henk Adams to help identify a possible country bank to form a platform for further growth in what is a new move for us in the US. 'In the meantime,' he continues, 'I asked all our US Managers to come up with ideas to help develop our business in the US. Lizz Hund and her team in San Francisco were very keen to focus our attention on California and on agri-production. They suggested we launch a corpo- rate farming division which would dovetail nicely with any acquisition of a rural bank in that region. This proposal was welcomed, not least because I agreed with the Managing Board that we were under-invested in this region.' A brief look at the Californian mar ket explains why attention began to be focused clearly on this region. Says Hund, who heads up the western region of the US, 'Over time, we've built up a good corporate banking business here in the region. And we were always talking about how much potential there is here. Just let me give you a few numbers. California is the largest agricultural producer in the world. We are talking about USD 42 billion every year. It is the fastest-growing and most ethnically diverse region in the US. We tend to be the innovators, the trend-setters for the rest of the country. And Cali fornia is the gateway to the Pacific Rim.' Given this environment, for ntany people in Rabobank International (RI) the question was: with Rabobank's knowledge of Food and Agribusiness (F&A), why aren't we /4 'The Word I

Rabobank Bronnenarchief

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