COF has signed a deal for the acquisition of ING Direct for $6.2bn in cash and $2.8bn in stock. The stock-cum-cash transaction will be implemented by COF with the offering of 55.9 million shares to ING Groep at $50.07 per share.
The deal came under the dark clout, when the National Community Reinvestment Coalition (NCRC) blamed that the acquisition will limit the consumer access to banking and credit services, as well as it will increase the risks to the financial system of a new ‘too-big-to-fail’ institution.
After reviewing the concerns raised by the group, the regulatory body said that COF proposed acquisition will not hurt the competition in the market and consumers benefit.
The integration of COF-ING Direct deal will provide benefit to shareholders and clients of COF over the long term, while assisting to spread in attractive high-growth markets and to gain from an online banking franchise.
The favorable verdict has boosted the firm’s confidence, and it has announced to acquire the US credit-card business of HSBC Holdings for $2.6bn in the second quarter of this fiscal.
