Barclays’ proposed acquisition deal of ING Direct UK includes its deposits with balances of £10.9bn ($17.5bn) and mortgages with outstanding balances of £5.6bn, as at 31st August 2012.
The mortgage book, which has a loan to value ratio of 50%, will, reportedly, change hands at a discount of approximately 3% while the deposit book will be acquired at par.
Go deeper with GlobalData
On completion, approximately 750 ING Direct UK employees and 1.5m customers will transfer to Barclays, which will continue to utilise the firm’s operations and platforms to service existing customers until integration is completed.
The deal is subject to regulatory approval but is expected to be completed in Q2 2013.
In August, ING announced that the future of its ING Direct operations in the UK and Canada were under review.
ING Direct has enjoyed contrasting success in Canada and the UK.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataING Direct Canada posted an accumulated profit before tax of 603m in the period from 2005 to the end of 2011.
In the UK by contrast, business success has eluded ING Direct.
The UK unit of ING Direct has accumulated losses of 321m since setting up shop in 2003. In that period, it has only posted a profit in two years (2006 and 2009).
ING sold its direct banking arm in the US to Capital One for 489m in early 2011.
ING said that the future of its direct banking units in Australia, Austria, France, Germany, Italy and Spain were not under review.
