Citigroup Inc. will sell its consumer banking businesses in Indonesia, Malaysia, Thailand, and Vietnam to Singapore's United Overseas Bank (UOB). Alongside this, UOB will buy Citi's retail banking and credit card businesses.
Citi's recent sale is part of its plans to streamline the global operations and focus on institutional clients. The total purchase consideration for the acquisition is $3.6 billion. This includes a premium of $690 million. UOB will, expectedly, take in nearly 5,000 Citi employees after the deal closes.
However, the US financial giant will still have control over its institutional businesses in the four countries.
Additionally, Citi said it expects the deal to release $1.2 billion of tangible common equity (TCE) and an increase to TCE of over $200 million. T...