AIB said it has entered into exclusive negotiations with NatWest for the acquisition of around €6bn of Ulster Bank’s tracker mortgages.
The bank said that any potential transaction remains subject to negotiations and agreements.
It is believed that up to 40,000 tracker mortgages could be included in the sale.
The Competition and Consumer Protection Commission (CCPC) yesterday cleared AIB’s proposed purchase of Ulster Bank’s €4.2bn outstanding commercial loan portfolio.
JPAC said its investigation had looked at whether the planned AIB and Ulster Bank deal would lead to a substantial lessening of competition, but concluded that it would not.
Some 280 Ulster Bank employees will transfer to AIB as part of the deal.
But the JPAC also sounded a warning about the impact of Ulster Bank’s departure on broader competition in the banking market.
In a statement today, AIB said it is expected to begin loan migration gradually over the next several months to ensure optimized outcomes for the approximately 5,000 affected clients.
AIB CEO Colin Hunt said receiving CCPC approval is another important milestone in AIB’s inorganic strategy and follows the successful integration of Goodbody Stockbrokers last year.
“We look forward to working with our new clients and equally with our new Ulster Bank colleagues as they move to AIB Group,” he said.
“I would like to thank everyone who has worked on this historic transaction,” he added.
AIB, the largest mortgage lender here, will release its first quarter business update on May 5.
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Finance Minister Paschal Donohoe said he welcomed today’s news from AIB and added that the successful conclusion of the transaction by AIB would go a long way in providing a significant number of Ulster Bank clients with certainty about the fate of the transaction. of their mortgages.
“I am hopeful that these discussions will lead to a successful outcome, however I appreciate that the conclusion of this transaction is subject to normal due diligence, agreeing to final terms, as well as obtaining the appropriate approvals,” the Minister said.
The Minister also said that he wanted to point out that JPAC has given its clearance to AIB to complete its takeover of Ulster Bank’s corporate and commercial lending book from NatWest Group.
“Again, this is a very positive development for Ulster Bank clients whose loans will be transferred to AIB and also for Ulster Bank staff who will be moving to AIB as part of the transaction,” it said in a statement.