IRELAND’S COMPETITION WATCHDOG has announced a full investigation into a proposed deal between AIB and Ulster Bank.

The Competition and Consumer Protection Commission (CPCC) is moving to a full Phase 2 investigation into a planned AIB acquisition Ulster Bank’s loan book – a portfolio of performing commercial loans.

In a statement, the CPCC said that it has decided to investigate whether the deal could substantially lessen competition in the market in Ireland.

“Following an extended preliminary investigation, the CCPC has determined that a full investigation is required in order to establish if the proposed transaction could lead to a substantial lessening of competition in the State,” it said in a statement.

“The CCPC will publish its Phase 1 determination no later than 60 working days after the date of the determination and after allowing the parties the opportunity to request that confidential information be removed from the published version.

“Any parties who would like to send in submissions are invited to do so, via email to mergers@ccpc.ie, by 4.30pm on Friday 21 January 2022.”

In June, the banks agreed a €4.2 billion deal to see AIB take over Ulster Bank’s corporate and commercial loans.

Under the agreement, AIB will acquire the portfolio and approximately 280 employees will transfer to the bank.

AIB CEO Colin Hunt said the acquisition would “further underpin the bank’s ambitious growth plans and position us to support the business community and Ireland’s economic recovery as we emerge from the pandemic”.

Earlier in the year, NatWest – Ulster Bank’s parent company – had announced plans to pull the bank out of the Republic of Ireland over the next few years.