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Oct 21 2021, 08:20 IST/BST
Banks
Phase 2 investigation for Bank of Ireland/KBC transaction
- Sectors : Banks
- Companies : permanent tsb Group | AIB Group | Bank of Ireland
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| AIB Group | OUTPERFORM | 23/01/19 | Neutral | 14/08/18 | 237c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 511c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 155c |
DAVY VIEW
The move to a full Phase 2 investigation does not come as a surprise due to the size of the transaction, and we expect all three transactions from exiting banks to remaining domestic banks to ultimately be subject to full investigations. Both KBC Bank Ireland and Ulster Bank Ireland have decided to exit the market. The proposed acquisitions bring scale benefits, but we see ongoing competition with the growing presence of non-bank lenders and increased broker origination. We expect acquisitions to be passed, likely with some conditions applied.
