Aboitiz-led Union Bank of the Philippines on Thursday confirmed that it is in talks with Citigroup about the possible takeover of the American banking giant’s consumer banking business in the country.
In a regulatory filing, UnionBank told the Philippine Stock Exchange that “it is in discussions with Citigroup Inc. with respect to a potential acquisition of Citi’s consumer banking business in the Philippines.”
The bank made the disclosure after business publication Bloomberg said that it is the “preferred bidder” for Citi’s retail banking assets in the country.
Citigroup announced in April that it would be closing its consumer banking operations in 13 countries, including the Philippines, but that operations in the country would continue for the time being.
The American banking giant said it will focus its Global Consumer Bank presence in Asia and Europe, the Middle East, and Africa (EMEA), particularly on four wealth centers—Singapore, Hong Kong, the United Arab Emirates, and London.
As a result, the bank said it intends to pursue exits from its consumer franchises in 13 markets across the two regions.
The affected businesses include the consumer franchises in the Philippines as well as Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, Poland, Russia, Taiwan, Thailand, and Vietnam.
Nonetheless, the bank’s Institutional Clients Group or wholesale banking business will continue to serve clients in the Philippines and the 12 other markets where it intends to wind down its consumer banking operations.
With regard to the talks between UnionBank and Citigroup, the Aboitiz-led lender said that the discussions are at a “preliminary stage.”
The bank said that “any transaction in relation to the foregoing would be subject to, among other things, the completion of satisfactory due diligence, the negotiation and execution of definitive transaction documents, satisfaction of the conditions contained therein and the approval by the regulators of the transaction.”
UnionBank also said “there can be no assurance that the transaction will be completed at this stage.”
“Further announcement(s) with respect to the bank’s discussions with Citi will be made as appropriate,” it said. — VBL, GMA News
UnionBank confirms talks with Citi on consumer, retail business takeover in PHL
Source: News Panda Philippines
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