Egg ties up deal to sell French setup to ING

25th November 2004, Comments 0 comments

LONDON, Nov 25 (AFP) - Egg, the internet bank majority-owned by British insurer Prudential, said Thursday it had finalised a deal to sell its French savings and online broking business to Dutch financial services group ING.

LONDON, Nov 25 (AFP) - Egg, the internet bank majority-owned by British insurer Prudential, said Thursday it had finalised a deal to sell its French savings and online broking business to Dutch financial services group ING.

The move marks Egg's final withdrawal from the French market. Last month, it announced the sale of its unsecured lending operations to Banque Accord for EUR 140 million (USD 185 million).

No financial details on the sale to ING were disclosed.

The sale will transfer 45,000 savings and investment accounts to ING Direct France, an online savings provider, with savings account liabilities of about EUR 35 million and investment account funds under administration of about EUR 30 million. No assets will be transferred to ING Direct France.

Egg said up to 40 of its 450 French staff will be redeployed as a result of the sale, which will be completed by the end of the year.

It said it has not altered its expectations on total exit costs from France, which it estimated in October to be EUR 170 million.

Egg first announced in July its intention to withdraw from the French market after less than two years.

On October 5 it said had received an approach from ING Direct France and granted exclusivity to conclude the agreement.

© AFP

Subject: French News

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