UOB Group to take over Citi’s consumer banking sector in Thailand, 3 other nations
The UOB Group has reached an agreement to buy Citigroup’s consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam, Citi announced on Friday.
“The deal includes retail banking and credit-card businesses, but excludes the bank’s institutional businesses in the four countries,” Citi said.
All 5,000 Citi staff members are expected to be shifted to UOB once the deal is completed.
UOB will pay Citi a cash consideration for the net assets it is acquiring subject to customary closing adjustments, plus a premium of 915 million Singapore dollars, Citi said, adding that UOB was selected after an extensive and competitive auction process.
Upon closing, Citi expects the transaction to result in the release of some US$1.2 billion of allocated tangible common equity, as well as an increase to tangible common equity of over $200 million.
Peter Babej, Citi Asia-Pacific CEO, said Citi is confident that UOB, with its strong culture and broad regional ambitions, will provide excellent opportunities and become a long-term home for its consumer banking colleagues in Indonesia, Malaysia, Thailand and Vietnam.
Tibor Pandi, country head of Citi Thailand, said the Kingdom remains a key market for Citi globally.
“We remain committed and focused on serving institutional clients locally, regionally, and globally as we have for over half a century,” he added.
Mark Mason, Citi CFO, said the sale of the four consumer markets demonstrated Citi’s sense of urgency to execute its strategic refresh.
“We are committed to working in the best interests of our shareholders by focusing our resources on businesses that can deliver growth, as well as increasing the capital we return to shareholders over time,” Mason added.