Barclays and ABN Amro have agreed terms for their multi-billion euro merger plans in a deal which values ABN Amro shares at €36.25.

In a joint press release on Monday morning, the two banks said each of their boards had unanimously resolved to recommend the transaction to their respective shareholders. The holding company of the combined group will be called Barclays PLC, the press release states. The bank’s headquarters will be in the Netherlands.
The two have been in exclusive talks for several weeks. However, ABN Amro executives are also expected to hold preliminary talks today with a consortium of banks headed by Royal Bank of Scotland, sparking prospects of a bidding war.