DUBLIN, Ireland, Aug. 23, 2002 (PRIMEZONE) -- Allied Irish Banks, p.l.c. (NYSE:AIB) and Bank of Ireland (NYSE:IRE) have announced that they have annulled their agreement to form a joint venture technology company (JV) and have jointly withdrawn their application to the European Commission for competition clearance for the proposed JV.
This decision has been taken following an indication from the Commission that the JV would be subjected to a further detailed investigation lasting for a prolonged period. Both banks concluded that 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.
AIB and Bank of Ireland are disappointed that the JV will not now goahead. It would have reduced processing costs substantially andimproved efficiency and customer service. It generated stronginterest in the banking and technology sectors internationally andhad the potential to provide its services to organisations withvolume processing requirements in Ireland and elsewhere.