Dutch banking group ING is to sell Degussa Bank, a unit specialising in worksite banking for private customers, to a German investment group...

Dutch banking group ING is to sell Degussa Bank, a unit specialising in worksite banking for private customers, to a German investment group consisting of private bank MM Warburg and various private investors. The divestment is said by ING to be in line with its strategy of focusing on core direct banking activities as well as an ongoing strategy of allocating capital to those businesses that generate the highest returns. Degussa Bank was fully acquired by ING in June 2002. At 30 September 2006, the bank had a balance sheet total of approximately €2.8 billion ($3.7 billion). For ING, the transaction is expected to result in a net accounting loss of about €15 million, to be taken in the fourth quarter of 2006. The transaction is subject to regulatory approvals but is expected to be completed before the end of 2006. Based in Hamburg, MM Warburg is one of Germany's largest and oldest (founded 1798) independent owner-managed private banks. It offers services to affluent private customers, institutional investors and corporate clients via private banking, asset management and investment banking divisions.