Royal Bank of Scotland's €887 million takeover of First Active has been approved by the the Irish Financial Services Regulatory Authority (IFSRA), with shareholders expected to receive payments from December 19th.

Yesterday the former building society also announced that the next phase of the sale process will happen on December 15th, when the High Court will be asked to approve the proposed scheme of arrangements. Subject to the scheme being sanctioned and the satisfaction of the remaining conditions of the sale, the scheme is expected to come into effect on January 5th 2004. First Active's shareholders have voted overwhelmingly in favour of the takeover, which values their shares at €6.20.

Shareholders who received free shares when First Active floated on the Irish Stock Exchange stand to gain between €3,000 and €6,000 from the deal. First Active shares will trade for the last time on the Irish market on January 2nd and its listing will be cancelled. The bank said these dates were indicative and depended on High Court approval of the scheme.

Royal Bank intends to merge First Active with its Irish business, Ulster Bank. First Active chief executive, Mr Cormac McCarthy, will become chief executive of the expanded bank in January. First Active's finance director, Mr Michael Torpey, will take the same role in the enlarged financial institution.