Dutch insurance firm ING Group has entered into an agreement to sell Regio Bank to SNS Reaal, a provider of insurance, banking and investment services, for a total purchase price of E50.5 million.
This transaction is expected to result in a net profit of approximately E25 million for the Dutch insurer and an increase of three basis points on the tier-one ratio of ING Bank.
Established in 1927, Regio Bank was founded as the Nederlandse Middenstands Spaarbank (NMS). It became part of ING through the merger between NMB-Postbank and Nationale Nederlanden in 1991 and was rebranded to Regio Bank in 1996.
The deal is subject to approval from the appropriate authorities and is anticipated to close on July 1, 2007.