ING to Exit Russia with Sale to Global Development JSC
Deal News | Jan 28, 2025 | Globenewswire
ING has announced its decision to sell its Russian business, ING Bank (Eurasia) JSC, to Global Development JSC. This transaction marks ING's complete exit from the Russian market. Global Development JSC, based in Moscow and backed by a financial investor with experience in factoring services, will take over all Russian-based activities and personnel under a new brand name. The agreement follows comprehensive due diligence and awaits regulatory approvals, with closure expected in Q3 2025. ING stopped all new dealings with Russian companies in February 2022, reducing its lending exposure to Russia by over 75%. The sale is anticipated to negatively impact ING's P&L by 0.7 billion euros, including a 0.4 billion euro book loss and a 0.3 billion euro impact from currency translation adjustments. Post-transaction, ING will focus on reducing offshore Russian client exposure. ING, a global financial institution with a strong base in Europe, emphasizes sustainability and operates in over 40 countries. Its shares are publicly traded in Amsterdam, Brussels, and New York.
Sectors
- Financial Services
- Mergers and Acquisitions
- Banking
Geography
- Russia – The transaction occurs within the Russian market, involving Russian-based assets and companies.
- Netherlands – ING, a Dutch-based financial institution, is making a strategic exit from Russia, highlighting the Netherlands' involvement in the transaction.
Industry
- Financial Services – The article primarily deals with the sale of banking operations, which falls under the financial services sector.
- Mergers and Acquisitions – The transaction involves the sale and acquisition of banking operations, a typical activity within the M&A industry.
- Banking – The companies involved are primarily engaged in banking services, within which the transaction is taking place.
Financials
- 0.7 billion euro post-tax – The anticipated negative P&L impact on ING due to the transaction.
- 0.4 billion euro – The estimated book loss from the transaction.
- 0.3 billion euro – Impact from recycling currency translation adjustments through P&L.
- 1.0 billion euro – ING's offshore exposure to Russian clients as of 30 September 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ING | Selling Company | Company | A global financial institution headquartered in the Netherlands, exiting its Russian market operations. |
| Global Development JSC | Bidding Company | Company | A Russian company owned by a financial investor specializing in factoring services, acquiring ING's Russian business. |
| ING Bank (Eurasia) JSC | Target Company | Company | The Russian subsidiary of ING being sold to Global Development JSC. |