BSP approves UnionBank's acquisition of Citi's local retail business
MANILA, Philippines — The Bangko Sentral ng Pilipinas has given the go-ahead for UnionBank of the Philippines to proceed with its acquisition of Citigroup Inc.’s local consumer banking business.
In a disclosure to the Philippine Stock Exchange on Wednesday, the Aboitiz-led bank said the central bank sent in the approval notice last Monday.
Months earlier, Citigroup announced it would be exiting the consumer banking scene in some markets, including the Philippines, to focus on its investment banking and wealth management businesses in markets like Hong Kong, Britain, Singapore and the United Arab Emirates. UnionBank secured the deal from Citi after it edged out rival banks.
UnionBank is shelling out P55 billion to acquire the American banking giant's consumer segment in the Philippines, which include real estate assets in Square in Eastwood, as well as three full service Citi branches, five wealth centers and two bank branch lites.
The deal also means UnionBank would absorb approximately 1,750 local employees of Citi, including those in senior management roles.
A unit of Fitch Group earlier noted that UBP's move would be positive for its long-term growth.
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