LONDON (dpa-AFX) - NatWest Group plc (NWG.L), formerly known as the Royal Bank of Scotland Group plc, announced Monday that NatWest Holdings Limited and Ulster Bank in the Republic of Ireland or UBIDAC have entered into a binding agreement with AIB Group p.l.c.
The deal is for the sale of about 4.2 billion euros gross performing commercial lending and associated undrawn exposures of about 2.8 billion euros.
The deal is part of NatWest Group's phased withdrawal from the Republic of Ireland.
In February, NatWest and UBIDAC said they had agreed a non-binding memorandum of understanding with Allied Irish Banks, a unit of AIB Group, in respect of performing commercial lending.
The company now said the transaction is subject to regulatory approvals. NatWest and UBIDAC will provide further information at the appropriate time.
On completion, it is estimated that a small gain on disposal will be recognized, based on the net carrying value of the lending as of December 31, 2020. The exact impacts of disposal will depend on movements in the book between now and transfer, the timing of which remains uncertain.
Under the deal, it is anticipated that around 280 colleagues will transfer from UBIDAC to AIB with the final number of roles confirmed as the deal completes.
NatWest Group CEO Alison Rose said, 'In line with our strategy of a phased withdrawal from the Republic of Ireland, I am pleased that we have now reached agreement with AIB on the sale of the majority of Ulster Bank's performing commercial lending portfolio.'
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