AIB takeover of Goodbody approved

The Ballsbridge location of financial services firm Goodbody. Picture: Leah Farrell / RollingNews.ie

The Competition Authority has approved the takeover of Goodbody by AIB.

In a decision announced today, the Competition and Consumer Protection Commission said the deal would not substantially reduce competition in the market. 

It was announced in March that AIB was to acquire the broker's body for €138m.

With Goodbody holding cash reserves of €56m, AIB will be paying a net €82m for the broker that it was forced to sell off for a much smaller amount as part of its taxpayers' bailout almost 10 years ago.

Financial services firm Fexco subsequently emerged as the 51% owner, with a number of Goodbody principals retaining their shareholdings.

At the time, finance minister Paschal Donohoe said the deal will be good for, and will strengthen, AIB, Goodbody, Fexco, and the Irish economy.

Under the deal, there will be a restriction on Goodbody hiring any person in the open market or otherwise, on pay of €50,000 or more, who was an employee of AIB.

The acquisition had been delayed as the Government worked on a structure to keep Goodbody, which operates in an industry where employees are paid performance bonuses, at arm's length from the Government's majority-owned AIB, where the pay cap applies.