UK banking giant Barclays PLC has agreed to acquire the mortgages and deposits of ING Direct UK. Financial terms of the deal were undisclosed
The deal will bring in 1.5 million customers along with 750 employees, £10.9 billion ($17.47 billion) deposits and £5.6 billion ($8.98) mortgages under Barclays.
Barclays declared that it would be buying the mortgages at roughly 3% discount and the deposits at par. The deal is anticipated to be completed in the second quarter of 2013, subject to certain regulatory conditions.
Following the completion of the deal, Barclays will integrate the ING Direct UK business with its UK Retail and Business Banking division. Until the integration is completed, Barclays will continue using ING Direct UK’s businesses to serve the customers under the same terms and conditions.
Barclays also expects the deal to improve its return on equity. Barclays has seen a decline in profits in its investment-banking segment. The bank is in the process of conducting a strategic review to simplify its businesses, increase profitability and reduce over-dependence on the investment-banking arm.