Scotiabank buys ING Unit for $3.13 billion

Dutch firm must sell assets to repay state bailout funds

ING’s $3.13-billion sale of its Canadian online bank to Scotiabank may put the Dutch company that much closer to repaying state aid it received in 2008.

After its bailout by the government of The Netherlands, ING was ordered by the European Union to sell its insurance operations, its American online bank, and Dutch mortgage lender, WestlandUtrecht Bank, before the end of 2013.

The transaction was announced late on Wednesday, and is expected to lead to a 1.1 billion-euro, or $1.4 billion, gain after tax.

ING is in talks with buyers for its Asian life insurance operations and may sell the business in parts for a higher return.

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