AMSTERDAM ( TheStreet) -- ING Group ( ING, the Dutch financial services company, said Friday it agreed to sell its car lease division to BMW for €700 million ($1 billion).

"The sale of ING Car Lease illustrates ING's continued actions to streamline our business and simplify the company," said Jan Hommen, ING's CEO, in a statement.

ING said the sale will result in a capital release of around €530 million. The transaction also is expected to add 17 basis points to ING Bank's core Tier 1 ratio.

ING Car Lease employs about 1,200 workers.

The sale is expected to close in the fourth quarter of 2011. ING said its other leasing and factoring businesses, including ING Lease and ING Commercial Finance, aren't affected by Friday's announcement.

-- Written by Joseph Woelfel

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