SEOUL, Sept 7 (Reuters) - KB Financial Group Inc is expected to agree as early as next week to buy ING Groep NV’s South Korean insurance business in a deal worth at least $2.2 billion, media reported on Friday.
“The negotiation with ING is in the final stage ... and is likely to be completed as early as next week,” South Korea’s Edaily online news outlet quoted an unnamed KB Financial official as saying.
ING has been looking to sell the business for around 3.5 trillion won ($3.1 billion) but the deal will likely be agreed at between 2.5 trillion won and 3.0 trillion won, according to the report.
A KB Financial spokesman said the company was still in talks with ING.
The proposed sale is part of the Dutch bank and insurer’s divestment plan in Asia. It is selling Asian life insurance and asset management operations in two separate transactions.
ING expects to bring in a total of $7 billion in what could be Asia’s biggest insurance M&A deals, and plans to use the proceeds to help repay a bailout it received from the Dutch government during the 2008 financial crisis. ($1 = 1133.8500 Korean won) (Reporting by Miyoung Kim; Editing by Chris Gallagher)