Ulster Bank set to exit Irish market after more than 160 years Goldman Sachs engaged with number of parties interested in elements of loan book
Wed, Feb 17, 2021, 09:05 Updated: Wed, Feb 17, 2021, 21:52
An announcement is scheduled to be made on Friday morning as the UK group reports annual results. File photograph: Nick Bradshaw
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The board of NatWest is set to decide on Thursday evening on a proposal to wind down Ulster Bank in the Republic after more than 160 years in the market, setting the stage for a likely break-up of the lender’s €20.5 billion loan book, according to sources.
Dublin-based Depfa Bank is set to be bought by Austrian lender Bawag from a German State bad bank for an undisclosed sum and will continue the orderly winddown of the business.
Bawag said that it will be able to make money from continuing to run down the former public-sector lenderâs low-risk assets. It would also give the Vienna-headquartered bank access to Depfaâs excess capital reserves, according to industry observers.
âThe acquisition of Depfa represents an attractive and capital accretive investment opportunity,â said Anas Abuzaakouk, chief executive of Bawag. âThis allows us to acquire high-quality low-risk assets, leverage our balance sheet, and draw upon on our existing infrastructure and operational capabilities.â
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Private equity giant Cerberus Capital Management and the founders of Dorel Industries Inc. have pulled the plug on their effort to take the Canadian consumer products company private following what appears to be insurmountable opposition to the proposal from shareholders.
The outcome thrusts the spotlight back onto Dorel chief executive Martin Schwartz and other founders, who now face increased investor expectations to build on COVID-19 sales gains and bring the company’s three different business lines back to steady profit growth. It also raises questions about whether Mr. Schwartz and his family, who control Dorel through multivoting shares, still harbour a desire to pursue a similar transaction in the future.