ING Groep NV (NYSE:ING), the Dutch parent company of ING Direct USA, has agreed to sell its online bank to Capital One Financial Corp. (NYSE:COF)
The sale will be for $9 billion in cash and stock. This move helps Capital One move up from the 8th largest bank in the U.S., based on deposits, to the 5th largest depository bank. Capital One also becomes the largest direct bank with the acquisition.
Why sell ING Direct?
ING Direct is a successful division and a pioneer in online banking – why sell it? Back in 2008 ING Groep NV received a 10 billion Euro bailout from the Dutch government. As part of that loan, ING Groep NV is required to restructure and divest itself of ING Direct USA.