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IRELAND’S COMPETITION WATCHDOG has announced a full investigation into a proposed deal between AIB and Ulster Bank.
The Competition and Consumer Protection Commission (CPCC) is moving to a full Phase 2 investigation into a planned AIB acquisition Ulster Bank’s loan book – a portfolio of performing commercial loans.
In a statement, the CPCC said that it has decided to investigate whether the deal could substantially lessen competition in the market in Ireland.
“Following an extended preliminary investigation, the CCPC has determined that a full investigation is required in order to establish if the proposed transaction could lead to a substantial lessening of competition in the State,” it said in a statement.
“The CCPC will publish its Phase 1 determination no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.
“Any parties who would like to send in submissions are invited to do so, via email to mergers@ccpc.ie, by 4.30pm on Friday 21 January 2022.”
In June, the banks agreed a €4.2 billion deal to see AIB take over Ulster Bank’s corporate and commercial loans.
Under the agreement, AIB will acquire the portfolio and approximately 280 employees will transfer to the bank.
AIB CEO Colin Hunt said the acquisition would “further underpin the bank’s ambitious growth plans and position us to support the business community and Ireland’s economic recovery as we emerge from the pandemic”.
Earlier in the year, NatWest – Ulster Bank’s parent company – had announced plans to pull the bank out of the Republic of Ireland over the next few years.
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No need for an investigation there chaps, we all already know there is no competition in the Irish banking sector as it is.
Ulster Bank are closing down so the loans have to go somewhere, this is all optics as CCPC have to be seen to be on top of things
@Paul Keenan: Agreed, it’s either sell the loans to AIB or sell them to a foreign fund.
I’m sure the banks are quaking. A good slap on the wrist will follow from the central bank followed up by a good slap on the back by FFG as they look forward to another year at the trough.
@Shelly Levine: slap on the wrist for what? Ulster are leaving – they are selling their loans. Presumably Aib were highest bidder. My take is that this is about whether Aib’s offer should be accepted or whether it shouldn’t and it should go to the next bidder….?
The issue is with a system that makes it hard for competitors to come in, but not sure there’s anything wrong being done here by Aib or Ulster?
Banking cartels in Ireland
Who knew …
Living in a Gangsters paradise…
The Golden circle is intact…
@Kerry Evans: banking and insurance cartels
So let take a look at this deal a little bit closer.
AIB bought the loan book worth €4.2 billion, so in fact us the Irish tax payers will pay as we already own 70% of AIB.
Now I’m wondering is that € 4.2 billion part of the 15% that Paschal want to sell on the world markets. ????
Next question is how many members of this government own or hold shares in AIB?????
Lower capital hurdles to attract competition.
Dulux will be delighted with the white wash order.
The love of money is the root of all evil. Dig, dig dig. But what about male predatory sex?
There are some problems for which there are no solutions, or only very imperfect ones. The Competition Authority doesn’t publish their analysis of the issues, or who made submissions and their content.
have your say