Central Bank approves sale of stockbroker Goodbody to AIB

The Central Bank of Ireland has approved the sale of stockbroker Goodbody to AIB, the final regulatory hurdle necessary for the deal to be completed.

It is understood that AIB will formally announce the completion of the deal within the next two weeks once the outstanding legals have been concluded.

On March 2nd, AIB announced that it had reached agreement to acquire Goodbody, subject to clearance from the Central Bank and the Competition and Consumer Protection Commission. The deal was cleared by the CCPC on June 24th.

AIB and Goodbody both declined to comment on the Central Bank’s approval.

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AIB has agreed to purchase Goodbody for €138 million, which includes €56 million in cash.

AIB is acquiring Ganmac Holdings (BVI) Ltd, a private limited company registered in the British Virgin Islands, which acts as the holding company for Goodbody. The stockbroker is 51 per cent owned by Kerry-based financial services group Fexco, with the balance held by Goodbody’s management and staff.

Goodbody manages assets of about €8 billion and employs 300 people in offices across Ireland and the UK, provides wealth management, asset management and investment banking services.

Under the terms of the acquisition a small number of AIB staff from its corporate institutional and business banking team are expected to move across to Goodbody over time to avoid duplication.

At the time of the announcement AIB said Goodbody’s management accounts recorded revenue of about €71 million last year.

In March, AIB chief executive Colin Hunt, a former chief economist at Goodbody, described the acquisition as a “landmark deal” that would “greatly increase” the bank’s capacity to broaden services to customers while enhancing its growth opportunities.

“While the group will optimise synergies to expand customer offerings for both existing AIB and Goodbody private and corporate clients, Goodbody will remain as a separately regulated entity with its own brand and board,” he said.

New phase

Goodbody managing director Roy Barrett said the deal would mark “the beginning of an exciting new phase of the company’s development as this partnership has the potential to offer our business, our clients and our staff many opportunities for growth as we start the next chapter of Goodbody’s history”.

Mr Barrett is set to leave the business on completion of the deal, having led the broker for the past 25 years. He is set to receive about €10.6 million from the sale of his 7.7 per cent stake in the business.

Martin Tormey of Goodbody is set to succeed Mr Barrett as managing director.

Government-imposed pay restrictions will continue to apply at AIB, which is 72 per cent owned by the State, but Goodbody staff will be eligible to receive bonuses post the completion of the transaction.