Under the terms of the transaction, Barclays will acquire a deposit book with balances of £10.9bn and a mortgage book with outstanding balances of £5.6bn as at 31 August 2012.
The mortgage book had a loan to value ratio of 50 per cent as at 31 August 2012 and is being acquired at an approximate three per cent discount. The deposit book is being acquired at par.
On completion, approximately 750 ING Direct UK employees and 1.5 million customers will transfer to Barclays. Completion is subject, amongst other things, to regulatory approval and is expected to occur early in Q2 2013.
The acquisition follows the announcement by ING on 2 August 2012 of a review of its strategic options for the ING Direct UK business, and its subsequent decision to exit the UK retail banking market
Ashok Vaswani, chief executive of Barclays UK Retail and Business Banking, said: “We will be delighted to welcome ING Direct UK customers to Barclays. We intend to maintain the high standard of service and honour the existing terms and conditions they have experienced with ING Direct UK. The acquisition of ING Direct UK is a good fit with Barclays existing UK retail banking business.”