Published August 29, 2012 | 5:41 pm
Toronto: Bank of Nova Scotia said Wednesday that it has agreed to buy ING Bank of Canada from its Dutch parent ING Groep NV for 3.126 billion Canadian dollars (US$3.16 billion) in cash.
Scotiabank, Canada’s fourth-largest bank by assets, gains about C$40 billion in assets, C$30 billion in deposits, 1.8 million customers and more than 1,100 employees from ING Direct. The deal, subject to regulatory approval, is expected to close by this December.
The Dutch megabank said that the deal will help sharpen its focus on core businesses and strengthen its balance sheet.
The division, called ING Direct Canada, offers savings, checking, mutual fund and mortgage products through telephone representatives and online access. ING says the division has about 1.8 million customers in Canada.
ING will continue to operate direct banking businesses in Australia, Austria, France, Germany, Italy and Spain. It is considering a sale of its United Kingdom business. It sold its U.S. business to Capital One Financial in February.
The bank said it expects a net investment of about C$1.9 billion after deducting ING Direct’s excess capital. It also said it will fund the transaction through a public offering of 29 million common shares at C$52, on a bought deal basis, for gross proceeds of C$1.508 billion.
Scotiabank is one of North America’s premier financial institutions and Canada’s most international bank. With more than 81,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking.