Barclays to acquire ING Direct UK

<p>Barclays is set to acquire ING UK in a lucrative deal for the British bank.</p>

Barclays is set to acquire ING Direct UK, taking on the latter's £10.9 billion in deposits and £5.6 billion mortgage book.

The Dutch banking group announced its plan to conclude its UK operations in August 2012, as it looks to raise funds to repay a bailout from the Netherlands government in 2008.

Its deal with Barclays will involve transferring some 750 ING employees and 1.5 million customers over to the London-headquartered institution.

Boss of Barclays UK retail banking Ashock Vaswani commented: "We intend to maintain the high standard of service and honour the existing terms and conditions [customers] have experienced with ING Direct."

ING said it would incur a €260 million (£210 million) loss after tax on the sale, which is partly due to its agreement to auction its mortgages to the bank at a price of three per cent below the level ING values them in its accounts.

At 09:50 BST, Barclays was down 0.1 per cent on the London Stock Exchange to 22.05p per share.

Find the latest spread betting strategies for the FTSE 100 at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.