Financial services provider KBC and general insurer ING Belgium have ended their credit insurance joint venture, International Factors, in which both companies held a 50% shareholding. As part of the agreement, KBC will acquire ING Belgium's stake in International Factors, allowing it to become the sole owner of the factoring and credit insurance firm.
The decision for the sale was prompted by the two companies’ different strategic perspectives and a change in external conditions, which include strong growth in the factoring market as a result of the lower capital charge for factoring under Basel II.
International Factors (IFB) will continue to pursue its activities, providing the same services. In addition, KBC has also revealed its intentions to expand the factoring business within the KBC Group.
Meanwhile, ING will focus on funding commercial activities in Belgium via ING Commercial Finance Belux, which will take on board the IFB commercial activities generated by ING and the employees involved. Moreover, the company guarantees that the continuity of the service provided to its customers will not be affected. This move will enable ING to expand the international network of ING Commercial Finance, which is present in seven countries, and to consolidate its position in the Belgian and Luxembourg markets.