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ING Group Acquires Barings Group in Landmark Transaction

Strategic Insights

— 1 min read

ING Group has reached an agreement in principle with the joint administrators of Barings, Nigel Hamilton, Alan Bloom, and Maggie Mills of Ernst & Young, to acquire substantially all the businesses, assets, and liabilities of the Barings Group. This acquisition aims to continue the activities of the Barings Group, with ING Group supplying 660 million pounds in cash to enable Barings' business operations to resume trading normally.

Key Takeaways:

  • The acquisition is subject to approvals from the relevant regulatory authorities, including the Bank of England and the Dutch Central Bank, as well as the relevant securities authorities.
  • ING Group will retain the jobs within Barings, with the management of Barings supporting the acquisition.
  • The agreement reflects a strategic fit between ING Group and Barings, with ING recognizing the qualities of Barings' client service resources, especially in asset management, merchant banking, emerging market securities, and research.
  • The acquisition aims to yield significant synergies and enhance ING Group's presence in international financial markets.
  • ING Group believes the acquisition will be earnings per share neutral for the current 1995 financial year and earnings per share enhancing thereafter.
  • Hessel Lindenbergh, a member of ING's Executive Board, has been nominated to be responsible for the Barings businesses within the ING Group.
  • The "Barings" name will continue to be used for each Barings Business Group, with the three main Baring business units reporting individually to the relevant executive committees of ING.

Statistics:

  • ING Group will supply 660 million pounds in cash to enable Barings' business operations to resume trading normally.
  • The Barings Group will have shareholders' funds of some 200 million pounds after restructuring and charging off loans.
  • The acquisition is expected to yield significant synergies, enhancing ING Group's presence in international financial markets.

Sources:

  • ING Group
  • Bank of England
  • Dutch Central Bank
  • Ernst & Young
  • Robert Fleming & Co. Limited
  • Dewe Rogerson

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