Under the terms of the agreement, Capital One will pay $6.2bn in cash and $2.8bn in stock.
ING Groep also will receive a 9.9% stake in Capital One and will have the right to name a director to the US bank’s board.
Capital One plans to fund the transaction, through a public equity raise of $2bn and debt offerings of $3.7bn, prior to close of the transaction.
ING said that divestment is part of its restructuring plan which was filed with the European Commission in 2009 to obtain the Commission’s approval for the support ING received from the Dutch State in the context of the financial crisis.
The transaction is subject to customary regulatory approvals, including banking approvals in both the US and The Netherlands, and is expected to close in late 2011 or early in 2012.
