© NurPhoto via Getty Images
–
Bank-insurer KBC has reached an agreement to sell its remaining activities in Ireland to competitor Bank of Ireland. If the deal of around 5 billion euros is approved by the authorities, KBC’s withdrawal from Ireland will be a fact, confirms KBC spokeswoman Viviane Huybrecht.
–
mtmSource: BELGIAN
—
Both parties had already announced an agreement in principle in April, which has now been converted into a “legally binding agreement”, according to a press release. Bank of Ireland will acquire almost 9 billion euros in healthy loans from KBC in Ireland, as well as the deposit portfolio of 4.4 billion euros and a small part of problem loans (about 300 million euros). The announcement does not immediately affect KBC’s customers in Ireland.
The transaction is subject to regulatory approval and the Irish competition authorities. The latter announced earlier this week that it would thoroughly investigate the deal “to determine whether the transaction could lead to a substantial reduction in competition in Ireland”.
KBC expects the sale to initially have a negative impact of 200 million euros due to, among other things, depreciation, provisions for restructuring costs and impairments. These will be booked in the third quarter. But after completion, a positive impact of 200 million euros is expected.
KBC announced in April that it wanted to withdraw from Ireland after more than 40 years. In August, the sale of almost the entire portfolio of loans with repayment problems was announced.
— .
