The acquisition includes Ulster Bank’s performing non-tracker mortgage loans, a subset of non-performing non-tracker mortgage loans, and its entire performing micro-SME business direct loan book, 25 properties, and its asset finance loan business
Ulster Bank headquarters. (Credit: DXR/Wikipedia)
Ireland’s Competition and Consumer Protection Commission (CCPC) has approved Permanent TSB (PTSB)’s acquisition of certain assets of Ulster Bank Ireland.
The acquisition will include Ulster Bank’s performing non-tracker mortgage loans, and a subset of non-performing non-tracker mortgage loans.
In addition, Ulster Bank will divest its entire performing micro-SME business direct loan book, 25 properties in its branch network; and its asset finance loan business.
In February last year, Ulster Bank announced its decision to withdraw from Ireland and NatWest Group agreed to divest assets from its Irish unit to Permanent TSB in July.
Under the terms of the agreement, NatWest will receive cash consideration, along with up to 20% stake in the enlarged share capital of PTSB.
PTSB chief executive Eamonn Crowley stated: “I think the deal is very good for existing shareholders because in effect they will get the benefit of an enlarged bank without having to put in any more capital and NatWest obviously see the value in it (taking a stake) as well.”
The CCPC has started a preliminary investigation on the proposed acquisition in December last year, and moved forward with a full investigation in May this year.
The competition watchdog investigated whether the proposed acquisition would result in substantial reduction of competition.
Based on the review of evidence available, the CCPC agreed that Ulster Bank would have exited the market regardless of the divestiture.
CCPC stated: “The CCPC does not have a role in approving or reversing the decision of a company to exit the State and it has previously highlighted its concerns in relation to competition in the banking sector.
“The CCPC will continue to engage with stakeholders, including the Department of Finance as part of its retail banking review to consider how to ensure the sector is open and competitive for the benefit of everyone.
“The CCPC will publish its full determination on its website no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.”