Scotiabank to buy ING Bank of Canada

Dutch company and former parent of Intact completes exit of Canadian market

Scotiabank has entered into an agreement with Netherlands-based ING Group to purchase ING Bank of Canada for $3.13 billion in cash.

ING would continue to operate separately under the deal announced Wednesday and keep the same branding–popularized in ads in which viewers are exhorted to “save your money”–for at least 14 months.

In February 2009, ING Group sold off its interests in its Canadian insurance arm, ING Canada, to Canadian investors. The largest property and casualty insurer in the country, ING Canada then re-branded as Intact Insurance.

Read: ING Canada now independent and ING Canada’s insurance arm becomes Intact

Scotiabank said the deal to buy the subsidiary, with a book value of about $1.7 billion and about $3 billion in deposits, will add to its earnings within the first year.

“ING will now benefit from a strong stable Canadian owner who will provide additional resources to continue to expand and to grow,” Scotiabank president and CEO Rick Waugh said on a conference call with analysts held just after the deal was announced.

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With files from Canadian Press.

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Transcontinental Media G.P.