Bank of Scotland's takeover of ICC Bank will result in voluntary redundancies with the number to be determined after the deal is completed. Mr Colin Matthew, Bank of Scotland's divisional chief executive, said there were job vacancies to be filled already at the bank's Irish operations and this will help to reduce any resultant job losses following the merger.

It intends to run the two banks separately for the first year or so while an implementation committee will devise the integration of the businesses. Bank of Scotland is paying £275 million for the State-owned bank.

The deal is expected to be approved by the Dail within two weeks after which the Minister for Finance, Mr McCreevy, will give an "irrevocable undertaking" to accept the bid. He has kept the door open for other bids for ICC. If a rival offer emerges before the middle of January, Mr McCreevy can accept it as long as it is at least 10 per cent higher than Bank of Scotland's.