Bank of Ireland gets green light to buy KBC assets

25/05/22

On 24 May 2022 the Irish Competition and Consumer Protection Commission (CCPC) cleared Bank of Ireland’s proposed purchase of KBC Bank’s €9 billion performing loan book, including mortgages, commercial and consumer loans.

The CCPC’s investigation identified significant competition concerns arising from KBC’s exit from the mortgage market in Ireland; it would leave just two retail lenders other than Bank of Ireland, AIB and Permanent TSB.  In light of these concerns, the CCPC considered it important that non-bank lenders operating in the Irish mortgage market be supported in their continued growth and role as emerging competitors in the sector.

The Commission’s approval of the merger was conditional upon the parties agreeing to make €1 billion in funding available to certain non-bank lenders and a further €1 million in funding available for distribution to companies involved in developing innovations relevant to the market for the provision of mortgages in Ireland.

The CCPC’s press release is available here

Press coverage on the merger in the Irish Times and Independent is available here and here