British bank Barclays agrees to buy ING Direct UK

October 09, 2012 | 14:26

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British bank Barclays on Tuesday agreed to purchase online bank ING Direct UK from its Dutch parent group for an undisclosed amount.

"Barclays Bank PLC announces that it has agreed to acquire the deposits, mortgages and business assets of ING Direct UK," the lender said in a statement.

The acquisition followed ING's decision in August to exit the British retail banking market after a strategic review.

Launched in 2003, ING Direct UK is a direct banking platform which offers clients savings and mortgages products through secure online and mobile Internet channels. Two call centres in Britain provide customer support.

"Barclays intends to integrate the ING Direct UK business into its UK Retail and Business Banking division," the British company added.

"Until integration, Barclays will continue to utilise ING Direct UK's operations and platforms to service existing customers.

"Customers are expected to continue to enjoy at least equivalent terms and conditions to those which they currently enjoy with ING Direct UK."

Barclays will acquire ING Direct UK's deposit book with balances of £10.9 billion ($17.5 billion, 13.5 billion euros) and a mortgage book with outstanding balances of £5.6 billion.

The group added that about 750 ING employees and 1.5 million customers will transfer to Barclays.

ING said it expected to book a transaction loss of 320 million euros after tax, which would be offset by a release of risk-weighted assets of the same value.

The deal is expected to complete, subject to regulatory approvals, in the second quarter of next year. Other ING Direct units are not affected by the announcement.

AFP

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