BSP gives UnionBank green light to take over Citi's PH consumer business

Aboitiz-led Union Bank of the Philippines on Wednesday secured the green light from the Bangko Sentral ng Pilipinas (BSP) for its planned acquisition of American banking Citigroup Inc.’s consumer banking business in the country.

In a disclosure to the Philippine Stock Exchange, UnionBank said it received a notice from the BSP dated July 18, 2022 “approving the acquisition by UnionBank of Citigroup's consumer business in the Philippines, which acquisition is composed of selected consumer assets and liabilities, real estate properties and interests of Citi Square Building Corp., and 100% of the capital stock in Citicorp Financial Services and Insurance Brokerage Philippines Inc.”

The BSP’s go signal for the transaction came over three months after antitrust watchdog Philippine Competition Commission (PCC) approved the acquisition in April. 

In December last year, UnionBank announced it entered into a Share and Business Transfer Agreement with various subsidiaries of Citigroup Inc. (Citi) to acquire the American lender’s consumer banking business in the Philippines.

The transaction covers Citi’s local credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines Inc. (CFSI), which provides insurance and investment products and services to retail customers.

The deal also covers all related Citi staff, with approximately 1,750 consumer bank and supporting employees expected to transfer to UnionBank upon close of the transaction.

UnionBank will also acquire Citi’s real estate interests, such as the Citibank Square in Eastwood, three full-service bank branches, five wealth centers, and two bank branch-lites.

The bank earlier said it would pay a cash consideration for the net assets of the Citi Philippines’s consumer business, subject to customary closing adjustments, plus a premium of P45.3 billion.

The transaction stemmed from Citi’s announcement in April 2021 of its plan to close its consumer banking operations in 13 countries, including the Philippines.—LDF, GMA News