ING Direct 2009 Annual Report Download - page 166

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.
Most significant companies disposed in 2007
ING Trust
ING
Regio B.V.
Belgian Broker &
employee benefits Total
General
Primary line of business Bank Bank Insurance
Sales proceeds
Sales proceeds 25 51 777 853
Cash proceeds 25 51 777 853
Cash in company disposed 11 11
Cash inflow on disposal (1) 25 51 766 842
Assets
Cash assets 11 11
Investments 4,622 4,622
Loans and advances to customers 41,156 301 1,461
Financial assets at fair value through profit and loss 350 350
Miscellaneous other assets 10 110 463 583
Liabilities
Insurance and investment contracts 5,075 5,075
Customer deposits and other funds on deposit 2,052 2,052
Miscellaneous other liabilities –4 – 811 178 –637
Net assets 18 25 494 537
% disposed 100% 100% 100%
Net assets disposed 18 25 494 537
Gain/loss on disposal (2) 726 418 451
(1) Cash outflow/inflow on group companies in the cash flow statement includes cash outflows/inflows on individually immaterial
disposals in addition to the cash flows presented.
(2) The gain/loss on disposal comprises the sales proceed, the net assets disposed, the expenses directly related to the disposal and the
realisation of unrealised reserves.
Additional information to the consolidated balance sheet of ING Group (continued)
2.1 Consolidated annual accounts
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