Permanent TSB Confirms Clearance From The Competition And Consumer Protection Commission for its Acquisition of Certain Elements of the Ulster Bank Retail, SME and Asset Finance Business in the Republic of Ireland.
On 17 December 2021, Permanent TSB Group Holdings plc (the "Group" or "PTSBGH") announced that Permanent TSB plc (“PTSB” or the “Bank”), a wholly owned subsidiary, had entered into a conditional agreement to acquire certain elements of the Ulster Bank Retail, SME and Asset Finance business in the Republic of Ireland from NatWest Group plc (the "Transaction"). The Transaction remained subject to obtaining the required regulatory approval, including the Competition & Consumer Protection Commission (CCPC), and shareholder approval. On 24 June 2022 at an Extraordinary General Meeting (EGM), shareholder approval for the Transaction was obtained.
The Bank confirms and welcomes the receipt of clearance from the Competition and Consumer Protection Commission on 21 July 2022 for the Transaction. All parties are working towards completing the acquisition of the performing non-tracker residential mortgage business[1] of Ulster Bank in Q4 2022 and it is currently anticipated that the acquisition of the 25 branches, Business Direct (micro-SME) and Lombard (Asset Finance) businesses will complete in Q1 2023, but in all cases no later than 30 June 2023. Approximately 400 to 450 Ulster Bank employees who are wholly or mainly assigned to the Retail, SME or Asset Finance businesses that are being acquired will be entitled to transfer to Permanent TSB under the Transfer of Undertakings regulations. The final number of employees transferring will be confirmed as the transaction completes.
Chief Executive Comment
Eamonn Crowley, Permanent TSB Chief Executive, said:
‘Following the recent approval of our own shareholders, today we have reached another significant milestone on our transformation journey with clearance from the Competition and Consumer Protection Commission for our proposed acquisition of certain elements of the Ulster Bank business.
Additionally as part of this transaction, Permanent TSB will be expanding our nationwide branch network in 25 locations, further reinforcing our commitment to communities across Ireland.
We are working closely with Ulster Bank to ensure a smooth transition for Ulster Bank customers and colleagues to Permanent TSB, which will begin in Q4 of this year, subject to regulatory approval. We look forward to welcoming them to a Bank with a deep community heritage and customer service ethos.’
The Group will issue its 2022 Interim Results on 27 July 2022.
[1] Within the non-tracker mortgage book, there is a small element of non-performing loans which, as at 30 June 2021, have nil arrears, are meeting contractual payments and are on a 12 month probation period (the probationary criteria). Subject to continued performance, these loans will be classified as performing at completion. Any assets within the portfolio at 30 June 2021 which subsequently become non-performing will form part of the portfolio of assets to be acquired in addition to performing non-tracker loans originated post 30 June 2021 and loans which meet the probationary criteria pre-completion.
