AIB first announced the €138m deal to buy Goodbody Stockbrokers, which provides wealth management, corporate finance and capital markets services in Ireland, in March.

The CCPC said today that the deal would not substantially lessen competition in the markets in which the two companies operate.

Under the terms of the agreement, AIB is buying 100% of Goodbody from its existing shareholders for a total consideration of €138m.

This includes an enterprise value of €82m and about €56m excess cash on the company’s balance sheet.

Goodbody is 51% owned by Co Kerry-based financial services firm Fexco.

The rest is owned by management and certain staff, led by its managing director Roy Barrett.

Goodbody manages assets of about €8 billion and employs 300 people in offices across Ireland and the UK.

It provides financial services in three core segments – Wealth Management, Asset Management and Investment Banking – to both private and corporate clients.

In March, AIB said the deal was consistent with its strategy announced last December to make “selective investments” in order to address gaps in its overall customer offering and diversify income streams.

“This transaction marks a step in delivering the updated strategy and AIB will continue to explore further opportunities, particularly in the Life and Pensions segments,” the bank added.

AIB also said in March that it will continue to adhere to the Government’s pay restrictions, but it will have separate remuneration structures in place for Goodbody.

Earlier this week, AIB said it would form a joint venture with Canada life as it seeks to plug gaps in its life, savings and wealth products.

The joint venture will be equally owned by Canada Life, a subsidiary of Great-West Lifeco.

The lender highlighted Canada Life’s “deep experience” of the Irish bancassurance market through Irish Life Assurance, which is also a subsidiary of Great-West Lifeco.

AIB currently operates under a tied agency distribution agreement with Irish Life, and will enter into a new distribution agreement with the new joint venture company.

The bank said it expects its equity investment in the joint venture will be around €90m.