UK’s NatWest Group has agreed to offload retail business of Irish unit Ulster Bank to financial services group Permanent TSB.

The financial details of the transaction have not been disclosed.

NatWest expects to receive cash as part of the deal in-addition to a 20% of stake in Permanent TSB.

Under the agreement, Permanent TSB will take over €7.5bn ($8.8bn) book of gross performing loans and 25 branches of Ulster Bank. Roughly 500 Ulster Bank employees will also join Permanent TSB, Reuters reported.

“I think the deal is very good for existing shareholders because in effect they will get the benefit of an enlarged bank without having to put in any more capital and NatWest obviously see the value in it (taking a stake) as well,” Permanent TSB chief executive Eamonn Crowley was quoted by Reuters as saying.

The deal is expected to close within the next 12 to 18 months, subject to certain conditions.

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By GlobalData

Last month, Allied Irish Banks (AIB) signed a binding agreement with Ulster Bank to acquire the latter’s €4.2bn of its performing corporate and commercial loan book.

AIB’s deal saw the transfer of nearly 280 employees related to the servicing of the loan book.

The decision for Ulster Bank’s phased withdrawal from Ireland was announced in February this year. The decision was made after a strategic review by its parent NatWest Group.