Allied Irish Banks has reached an agreement with the Minister for Finance Michael Noonan to acquire the EBS building society for a nominal fee of €1 to form one of the two new “pillar” banks under the Government’s bank restructuring plan.
EBS will continue to operate as a standalone brand and licensed subsidiary of AIB.
The transaction is expected to be completed by July 1st subject to regulatory approvals.
“The completion of the merger of AIB and EBS will be an important milestone in the creation of a reshaped and revitalised banking sector,” Mr Noonan said.
“The new merged entity will be a stronger and more domestically focused institution which will leave it better placed to service the needs of the Irish economy and will help return the banking system as a whole to long-term viability.”
“This merger is a key element of the Government’s restructuring plan announced on 31st March last and it will regenerate our banking sector around two pillar banks,” he added.