AIB and Bank of Ireland announced today they have annulled their agreement to form a joint venture technology company (JV).
An application to the European Commission for competition clearance for the proposed JV has been jointly withdrawn.
In a statement issued this morning, the two banks said the decision was been taken after an indication from the Commission the JV would be subjected to further investigation lasting a prolonged period and that the outcome was uncertain.
Both banks concluded such an extended process would create great uncertainty and would be unduly costly. It could also have an adverse impact on customer service and would be destabilising for staff.
The statement said: "AIB and Bank of Ireland are disappointed that the JV will not now go ahead. It would have reduced processing costs substantially and improved efficiency and customer service".