Ing Bank of Canada's Future After Acquisition

As the acquisition of ING Bank of Canada by Scotiabank was finalized, the future of the bank became a topic of interest for many.

ING Bank of Canada's future is now tied to Scotiabank's growth strategy, which includes expanding its presence in the Canadian market.

The acquisition has brought new opportunities for ING Bank of Canada's customers, such as increased access to Scotiabank's global network and services.

Scotiabank has stated its intention to maintain ING Bank of Canada's brand and operations, at least in the short term.

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Scotiabank has agreed to purchase ING Bank of Canada for $3.1-billion in cash.

The deal adds $30 billion in retail deposits to Scotiabank's balance sheet.

ING would continue to operate separately under the deal announced Wednesday and keep the same branding for at least 14 months.

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.

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The deal, announced after markets closed Wednesday, is expected to result in a net investment by Scotiabank of $1.9-billion.

ING Direct president and CEO Peter Aceto said ING would continue to operate under its current no-frills banking model and as a separate entity from Scotia.

Scotiabank is also announcing a public offering of 29 million common shares at $52.

The deal, which is subject to regulatory approval, is expected to close by this December.

Scotiabank will keep all 1,110 Canadian employees of ING as part of the acquisition.

ING Group has agreed to allow Scotiabank to use its branding under licence, and future branding will continue to be distinct from Scotiabank.

The brand transition is expected to take between 14 and 18 months.

Scotia will benefit from a strong stable Canadian owner who will provide additional resources to continue to expand and to grow.

ING Bank of Canada is known for its innovative mortgage products, such as the "Unmortgage" which offers features like 120-day rate holds and a 25% annual prepayment allowance.

If ING is absorbed by another bank, it's likely that its mortgage arm will be left untouched for now.

The "Unmortgage" also includes skip-a-payment options and discounted penalties, which can be a huge relief for homeowners who need to make adjustments to their mortgage.

However, things are less clear regarding ING's broker division, as the big banks' interest in broker business is decreasing.

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Scotiabank was actually the one purchasing ING Bank of Canada, not being sold. The deal was worth $3.1 billion in cash.

The purchase will add to Scotiabank's earnings within the first year, according to their president and CEO, Rick Waugh.

ING Bank of Canada will continue to operate separately under the deal, keeping the same branding for at least 14 months.

Scotiabank will gain $30 billion in retail deposits and 1.8 million customers from the acquisition.

The deal is expected to close by December, subject to regulatory approval.

ING Groep NV has been struggling to keep its balance sheet healthy amid bad loans and declining margins.

Scotiabank will keep all 1,110 Canadian employees of ING as part of the acquisition.

The brand transition is expected to take between 14 and 18 months.

Scotiabank is also announcing a public offering of 29 million common shares at $52 per share to fund the acquisition.