2nd UPDATE: Capital One Completes Acquisition Of ING Direct

Capital One Financial Corp. (COF) said Friday that it completed its acquisition of ING Direct USA from ING Groep NV (ING, INGA.AE).

Terms of the deal remain the same as when the deal was disclosed in June. Capital One paid ING Groep $6.3 billion in cash and issued about 54 million shares to the Dutch financial-services company for a total value of $9 billion. The shares give ING Groep a 9.7% stake in Capital One.

"We expect the ING Direct acquisition will deliver compelling financial results in the near term," Capital One Chairman and Chief Executive Richard Fairbank said in a statement.

On Tuesday, the U.S. Federal Reserve Board approved the deal after twice delaying a decision. The acquisition had sparked outcry from some consumer groups, arguing it would result in a bank that posed too much risk to the U.S. financial system.

While the Fed unanimously approved the bid, it ordered Capital One to improve its risk-management systems around collections.

The McLean, Va.-based bank, one of the country's largest credit-card issuers, said the transaction should have "minimal impact" on customers.

ING Groep had been ordered by the European Commission to sell the online bank in return for getting approval for the EUR10 billion state aid received in 2008.

The proceeds of the deal will be used to bolster its capital and repay some of the EUR3 billion debt it still owes the Dutch state. ING said it will lift its core Tier 1 capital ratio by 80 basis points to around 10.4%.

The disposal is part of a wider restructuring that will nearly halve ING's balance sheet and also includes the divestment of its insurance business and some other banking units.

-By Andrew R. Johnson, Dow Jones Newswires; 212-416-3214; [e-mail]

--Maarten Van Tartwijk contributed to this report.