ING deal boosts Barclays by £10.9bn
Banking giant Barclays has agreed to buy savings and mortgage business ING Direct UK in a deal that will see it add another 1.5m customers.
The acquisition will boost Barclays' savings business by £10.9bn and its mortgage book by £5.6bn.
Barclays, which will also take on around 750 ING Direct employees, said it would honour existing terms and conditions for ING Direct customers. Barclays said it was too early to say what the impact would be on ING staff once the deal is completed.
ING said it would incur a €320m (£260m) loss on the sale, as it has agreed to sell its mortgages to Barclays at a 3% discount to the book value.
Jan Hommen, chief executive of ING, said: "ING Direct UK operated in a very competitive market over the past years and I am proud of the excellent customer experience our UK team has built."
Ashok Vaswani, head of Barclays retail and business banking arm in the UK, said: "We intend to maintain the high standard of service customers have experienced with ING Direct UK."