Scotiabank says it has reached an agreement to buy ING Bank of Canada from Netherlands-based parent ING Group for $3.13 billion in cash.
   

The deal is expected to result in a net investment by Scotiabank of $1.9 billion, after deducting the excess capital currently at ING Direct.
   

Scotiabank (TSX:BNS) is also announcing a public offering of 29 million common shares at $52 _ for gross proceeds of $1.5 billion _ to fund the acquisition.
   

The deal, which is subject to regulatory approval, is expected to close by this December.