A $270M reason to close a deal

capitaloneThere is more than one reason for Capital One to make sure it closes its pending acquisition of ING Group’s online banking businesses. Try 270 million reasons.

According to a recent report in the Washington Business Journal, the deal between Capital One and ING includes a $270 million termination fee.

That means Capital One would be on the hook to pay that chunk of change should it not be able to complete the $9 billion deal.

The pending deal will make Capital One, one of Richmond’s biggest employers, the fifth largest bank in the U.S., based on deposits. It would also become the largest online bank in the country.

ING was forced to sell its online banking unit as a part of a provision of its bailout by the European Commission in 2008, according to reports.

Capital One beat out some big name competition in the bidding for the ING acquisition including GE Capital, part of General Electric.

Should it pass shareholder and regulatory approval, the deal is expected to close later this year.

capitaloneThere is more than one reason for Capital One to make sure it closes its pending acquisition of ING Group’s online banking businesses. Try 270 million reasons.

According to a recent report in the Washington Business Journal, the deal between Capital One and ING includes a $270 million termination fee.

That means Capital One would be on the hook to pay that chunk of change should it not be able to complete the $9 billion deal.

The pending deal will make Capital One, one of Richmond’s biggest employers, the fifth largest bank in the U.S., based on deposits. It would also become the largest online bank in the country.

ING was forced to sell its online banking unit as a part of a provision of its bailout by the European Commission in 2008, according to reports.

Capital One beat out some big name competition in the bidding for the ING acquisition including GE Capital, part of General Electric.

Should it pass shareholder and regulatory approval, the deal is expected to close later this year.

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Jeff Ottaviano
Jeff Ottaviano
13 years ago

As a local business owner here in the West End, I have had the pleasure of hosting hundreds if not thousands of Capital One employees here at The Wine Loft. It is a great group of employees who do a lot in our community here in Richmond and I wish them the best of luck with the acquisition.

Rojo Johnson
Rojo Johnson
13 years ago

As an ING Direct customer, I fear this acquisition. I like ING Direct’s online banking, and think that Capital One will screw it up, somehow.

DaveM
DaveM
13 years ago

Thank goodness I closed my ING Direct account a while back…

Kent Brockwell
Kent Brockwell
13 years ago

I work at Capital One as a freelance copywriter.

That’s it. I just wanted to make this about me.