AIB cleared to acquire Ulster Bank's €5.7bn tracker mortgages

The decision brings an end to the competition authority's role in examining the impact of the transfer of assets from Ulster Bank and KBC

The decision means 47,000 mortgage customers will migrate from Ulster to AIB in the first half of this year. Picture: Aidan Crawley/Bloomberg

AIB has been cleared to acquire Ulster Bank's tracker mortgage portfolio worth €5.7bn by Ireland's competition watchdog.

The decision means 47,000 mortgage customers will migrate from Ulster to AIB in the first half of this year. AIB acquired the loan book from Ulster priced at 95.15% par value.

The deal had been notified to the Competition and Consumer Protection Commission (CCPC) in August. It was one of the numerous transactions that have seen mortgages, loans, accounts and branches transferred to existing banks as Ulster and KBC plan to depart the banking market in Ireland.

The CCPC said that following an extended investigation, they determined that the proposed acquisition by AIB will not substantially lessen competition in the State.

AIB Group plc Chief Executive, Colin Hunt said receipt of CCPC approval was another important milestone in their transformation following the acquisition of Ulster Bank’s corporate and commercial loans.

“We set out our new medium-term targets in December 2022 and as we start the year we continue to make progress on the execution of our strategy. We look forward to welcoming these new customers from Ulster Bank as well as the many more new customers we are pleased to welcome to the group as the Irish banking landscape evolves," he said.

The decision also brings an end to the competition authority's role in examining the impact of the transfer of assets from the two departing banks.

The CCPC has now approved four separate acquisitions by AIB, Bank of Ireland and Permanent TSB of the assets of the departing Ulster and KBC.