Allied Irish Banks (AIB) announced it is has entered into exclusive discussions with NatWest Group plc for the acquisition of €6 billion of Ulster Bank performing tracker mortgages.

Any potential transaction remains subject to negotiations and agreement.

AIB also confirmed the receipt of competition clearance from the Competition and Consumer Protection Commission (CCPC) for the acquisition of €3.7 billion of Ulster Bank performing corporate and commercial loans.

“As intended, AIB will commence the migration of loans on a phased basis over the coming months to ensure optimised outcomes for the c. 5,000 impacted customers,” said AIB.

In line with previous guidance the Group expects a CET1 reduction of c. 130bps in relation to the corporate and commercial loan book acquisition.

AIB CEO Colin Hunt said: “Receipt of CCPC approval is another important milestone in AIB’s inorganic strategy and follows the successful integration of Goodbody last year.

“We look forward to working with our new customers and equally our new colleagues from Ulster Bank as they move to AIB Group.”