August 9, 2022

DealBook: Capital One to Buy ING’s U.S. Online Banking Unit for $9 Billion

Peter Foley/Bloomberg News

5:02 p.m. | Updated Capital One and ING announced the deal Thursday afternoon.

Capital One Financial has struck a deal to buy ING Group’s online banking business in the United States for about $9 billion in cash and stock, in an effort to bolster its nascent banking operations, people briefed on the matter told DealBook on Thursday.

An announcement could come as soon as Thursday afternoon, these people said.

Through the purchase, Capital One will continue its efforts to move beyond its well-known credit card business and secure more stable sources of revenue. The unit, ING Direct USA, has about $81.6 billion in deposits.

ING has been forced to sell off the unit by the European Commission as part of the bank’s 10 billion euro bailout in 2008.

Raymond Vermeulen, a spokesman for ING, declined to comment. A spokeswoman for Capital One was not immediately available for comment.

Shares in Capital One were up nearly 2.5 percent on Thursday after Dow Jones reported news of the impending deal.

Article source:

Speak Your Mind