Adds detail of ING strategy in paragraph 3, share price in paragraph 6, analyst comment in paragraphs 8-9

By Mateusz Rabiega

July 6 (Reuters) - Netherlands-based lender ING INGA.AS has bought around a 40% stake in Spain's Singular Bank from private equity firm Warburg Pincus for an undisclosed sum, it said on Monday, as it seeks to expand its private banking and wealth-management divisions.

The purchase, plans for which were first reported by Spanish newspaper Expansion last week, is expected to be finalised in the first quarter of 2027. Singular has around €19 billion ($22 billion) in assets under management, ING said.

The acquisition is the third of late by ING, joining a buying spree by other capital-heavy European banks, after it bought a stake in wealth management firm Van Lanschot Kempen VLAN.AS, as well in two Polish asset management firms belonging to Goldman Sachs GS.N.

WARBURG PINCUS SELLING WHOLE 93% STAKE IN SINGULAR BANK

Under the terms of the deal, in which U.S.-based Warburg Pincus will sell its entire 93% holding in Singular, ING will obtain a non-controlling stake with an option to increase that after a later ownership review, the Dutch lender said.

The rest of Warburg's shares will be bought by Mexican financial services provider Actinver ACTIVCRB.MX, Spanish private equity firm ProACapital and a number of local family offices, ING Spain CEO Alfonso Tolcheff Vaca De Osma told Reuters in an interview on Monday.

Singular's management is also expected to increase its stake to 15%, he added. Shares in ING were up 1% by 1333 GMT.

Italy's Intesa Sanpaolo ISP.MI had also been interested in Singular, sources told Reuters in May after an earlier Financial Times report which said Warburg was seeking €300 million for its entire stake.

DEAL 'MAKES A LOT OF SENSE', ANALYST SAYS

Morningstar analyst Johann Scholtz said that based on the size of its asset portfolio, Singular Bank probably generates around €200 million in revenue, meaning any impact of the stake on ING's results will not be "noticeable".

Strategically, "the deal makes a lot of sense", he added, as ING has been working to increase its net fee and commission income in recent years, focusing on the growth of its private banking, investments and wealth-management arm.

Anneka Treon, ING's global head of private banking, wealth management and investments, said on Monday that while the bank does not have a private banking presence in Germany, a potential move "could be interesting".

($1 = 0.8758 euros)