ING to sell Degussa Bank to German investment group
Amsterdam, 27 November 2006 - ING Group announced today that it has agreed to sell Degussa Bank, a unit of ING-DiBa specialising in worksite banking for private customers, to a German investment group consisting of private bank MM Warburg & CO and various private investors.
The divestment is in line with ING-DiBa’s strategy to focus on its core direct banking activities as well as ING’s ongoing strategy to allocate capital to those businesses that generate the highest returns.
Degussa Bank was fully acquired by ING-DiBa in June 2002. As of 30 September 2006, the bank had a balance sheet total of approximately EUR 2.8 billion.
For ING Group, the transaction is expected to result in a net accounting loss of about EUR 15 million, to be booked in the fourth quarter of 2006. The transaction will free up about EUR 120 million in Tier-1 capital and result in an increase of 4 basis points in the Tier-1 ratio of ING Bank NV.
The transaction is subject to applicable regulatory approvals and is expected to be completed before the end of the year.
ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 115,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand.
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