ING Direct 2008 Annual Report Download - page 154

ING Group Annual Report 2008
152
2.1 Consolidated annual accounts
Acquisitions effective in 2007
In September 2007, ING paid EUR 20 million to increase its shareholding in ING Piraeus Life (the joint venture between ING and Piraeus
Bank) from 50 to 100%.
In April 2007, ING acquired 100% of AZL, an independent Dutch provider of pension fund management services, for EUR 65 million.
In July 2007, ING announced that it had reached agreement to acquire full ownership of Landmark Investment Co Ltd, the twelfth largest
asset manager in South Korea. The purchase price paid for Landmark was EUR 255 million. Goodwill of approximately EUR 208 million
was recognised on acquisition and is mainly attributable to the operational synergies and to the future business potential resulting from
the acquisition. There was no significant difference in the carrying values of the net assets acquired immediately before the acquisition
and their fair values. All significant intangibles were recognised separately from goodwill and are included in Intangible assets. No
significant adjustments were made in 2008 to amounts recognised provisionally in 2007.
In November 2007, ING acquired 100% of Sharebuilder Corporation, a Seattle-based brokerage company for EUR 152 million, to extend
its retail investment products range and geographical spread in the United States. Goodwill of approximately EUR 94 million was
recognised on acquisition and is mainly attributable to the operational synergies and to the future business potential resulting from the
acquisition. There was no significant difference in the carrying values of the net assets acquired immediately before the acquisition and
their fair values. All significant intangibles were recognised separately from goodwill and are included in Intangible assets. No significant
adjustments were made in 2008 to amounts recognised provisionally in 2007.
In November and December 2007, ING acquired the Latin American pension businesses of Banco Santander in Mexico for EUR 349 million,
in Columbia for EUR 88 million, in Uruguay for EUR 20 million and in Argentina for EUR 235 million. As mentioned in Acquisitions
effective in 2008, the pension business in Chile was acquired in January 2008 for EUR 450 million. The total costs of the entire deal were
approximately EUR 1,142 million. Goodwill of approximately EUR 786 million was recognised on acquisition and is mainly attributable to
the operational synergies and to the future business potential resulting from the acquisition. The Latin American pension businesses
acquired represented the acquisition of leading positions in retirement services in high growth emerging markets, giving ING a sustainable,
scalable platform in Latin America. There was no significant difference in the carrying values of the net assets acquired immediately
before the acquisition and their fair values. All significant intangibles were recognised separately from goodwill and are included in
Intangible assets. Except for the effect of the nationalisation of the Argentinean pension business as disclosed in Disposals announced
and expected to occur in 2009 above, no significant adjustments were made in 2008 to amounts recognised provisionally in 2007.
In December 2007, ING announced the completion of the acquisition of 100% of the shares in Oyak Bank for an amount of
EUR 1,903 million. Oyak Bank is a leading bank in the Turkish market, offering a full range of banking services with a focus on retail
banking. Goodwill of EUR 1,015 million was recognised on acquisition and is mainly attributable to the future business potential resulting
from the acquisition, as Oyak is a major bank, also offering a platform to distribute insurance, asset management and retirement products,
in one of Europe’s fastest growing economies. There was no significant difference in the carrying values of the net assets acquired
immediately before the acquisition and their fair values. All significant intangibles were recognised separately from goodwill and are
included in Intangible assets. The profit for the year (before amortisation of the intangibles recognised on purchase accounting) was
approximately EUR 80 million, but no profit or loss was included in the ING Group net result over 2007.
Additional information to the consolidated balance sheet of ING Group (continued)