UPDATE: EU Expects To Finalize ING Case By End '09

The European Union expects to finalize its antitrust investigation into Dutch government support for troubled bank ING Group NV (ING) before the end of 2009.

"I hope to finalize the investigation soon, but I expect it will be concluded by the end of the year at the latest," European Commissioner for Competition Neelie Kroes said in a public meeting with lawmakers Tuesday.

In mid-September, the European Commission extended temporary approval for the Dutch government to help ING handle illiquid assets.

Kroes said the Dutch Government should reach an agreement on the sale of commercial banking assets to solve competition issues arising from the proposed merger of Dutch state-owned banks ABN Amro and Fortis Bank Netherlands ahead of Monday's deadline.

The E.U. Oct. 2 extended the deadline for a solution for the fifth time. The Dutch state has to sell assets ahead of a European Union deadline looming Monday as it seeks to merge the Dutch businesses of ABN Amro with those of Fortis Bank Netherlands, which it took over in 2008 to save it from collapse.

The European Commission, the E.U.'s executive branch, has told the government it needs to resolve competition concerns about the merged bank's dominant position in the Dutch commercial banking market.

-By Robin van Daalen and Archie van Riemsdijk, Dow Jones Newswires; [phone]; [e-mail]