As part of the deal, UOB said it will acquire Citigroup ‘s unsecured and secured lending portfolios, wealth management and retail deposit units that make up its consumer banking business in the four markets.
UOB, which has a prominent presence in Southeast Asia, will pay Citigroup for the net assets of the acquired businesses as well as a premium of 690 million USD.
Citigroup’s consumer business had an aggregate net value of about 4 billion SGD (2.97 billion USD) and a customer base of approximately 2.4 million as of June 30, 2021, UOB said.
UOB will also bring on board Citibank 's 5,000 employees in the four countries, including senior leadership, after the deal closes.
UOB estimated that completion will take place between mid-2022 and early 2024, depending on the progress and outcome of the regulatory approval process.
Citigroup said it expects the deal to release approximately 1.2 billion USD of allocated tangible common equity and an increase to tangible common equity of over 200 million USD. Tangible common equity is a measure used to assess a financial institution’s ability to deal with potential losses.
The New York-based bank will still retain control of its institutional businesses in Indonesia, Malaysia, Thailand and Vietnam.
Citigroup CEO Jane Fraser said last year that the bank will exit retail operations in 13 countries outside the US to improve returns. Many of those markets are in Asia-Pacific, including Australia, China, India and Indonesia.
Last year, Citigroup said it agreed to sell its consumer banking businesses in the Philippines and Australia and was winding down consumer banking operations in the Republic of Korea./.
- Southeast Asia’s street food sellers fight lockdown
- Latest Coronavirus News in Vietnam & Southeast Asia May 12
- BUSINESS NEWS HEADLINES MAY 12
- BUSINESS NEWS HEADLINES MAY 14
- BUSINESS NEWS HEADLINES MAY 10
- BUSINESS NEWS HEADLINES MAY 11
- BUSINESS NEWS HEADLINES MAY 8
- BUSINESS NEWS HEADLINES MAY 7
- VN Trade Ministry suggests gateway to sell local products on Amazon
- BUSINESS NEWS HEADLINES MAY 13
- BUSINESS NEWS HEADLINES MAY 6
- BUSINESS NEWS HEADLINES MAY 15
- Hygiene to become the new core for us in post Covid world: Godrej Consumer
- Italy's Triboo starts selling Chinese COVID-19 antibody tests
- COVID-19 outbreak enhances trend of "make where you sell"
- New normal as SE Asia returns to life
- Nike Says Coronavirus Will Continue to Have ‘Material’ Impact on Business as US Stores Reopen
- The business of survival
- Indian shares slip as coronavirus cases jump; consumer stocks slide
- GSK sells $3.4 billion Hindustan Unilever stake in largest India block trade
Citigroup to sell consumer businesses in Southeast Asia to UOB have 424 words, post on en.vietnamplus.vn at January 14, 2022. This is cached page on Talk Vietnam. If you want remove this page, please contact us.