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Capital One to Buy ING’s U.S. Online Bank

Thursday, June 16, 2011 - 1:33 PM
From Bloomberg
Capital One Financial Corp. (COF), the year’s top performer in the KBW Bank Index, is nearing a deal to buy ING Groep NV (INGA)’s U.S. online bank for about $9 billion in cash and stock, said people with knowledge of the matter.

The companies may reach an agreement for ING Direct USA as soon as today....

5
WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
1. Thursday, June 16, 2011 - 2:15 PM
Looks like it might now be a done deal. According to the Wall Street Journal:
ING Groep NV decided to sell its U.S. online-banking business to Capital One Financial Corp., according to people familiar with the matter.

With ING Direct's brand name being so strong, it seems to me that CapOne will likely continue INGDirect.com. It doesn't seem to make sense for them to continue Capital One Direct Banking, and if they eventually stop offering direct accounts, that will be a disappointment since they have kept their internet savings account rates much more competitive than ING Direct.
1
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
2. Thursday, June 16, 2011 - 2:21 PM
It may well be a done deal; however, there has been no "official" announcement.
2
WhataBummerWhataBummer413 posts since
Oct 15, 2010
Rep Points: 1,702
3. Friday, June 17, 2011 - 5:41 AM
It's now official. From Capital One's press release:
Capital One Financial Corporation (NYSE: COF) announced today a definitive agreement under which Capital One will acquire ING Direct from ING Groep in a stock and cash transaction valued at $9.0 billion. Currently the 8th largest bank in the United States, based on deposits, Capital One's acquisition of ING Direct combines ING Direct's valuable national direct deposit franchise with Capital One's advantaged access to assets and local scale branch banking. The combination strengthens Capital One's customer franchise and brand and provides significant financial and strategic upside with low execution risk. Upon closing, Capital One will become the 5th largest depository institution and the leading direct bank in the United States.

I'll have more on this soon.
1
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
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