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June 23, 2024

UnionBank gets BSP clearance to acquire retail banking segment of Citi

Union Bank of the Philippines led by bankero Edwin Bautista received the green light from the Bangko Sentral ng Pilipinas (BSP) to acquire the consumer banking business of American banking giant Citigroup in the Philippines.

The Aboitiz-led bank said in a disclosure to the Philippine Stock Exchange (PSE) that it has received a notice from the central bank dated July 18, 2022 approving the acquisition by UnionBank of Citigroup’s consumer business in the Philippines.

The transaction is composed of selected consumer assets and liabilities, real estate properties and interests of Citi Square Building Corp. and 100 percent of the capital stock in Citicorp Financial Services and Insurance Brokerage Philippines Inc.

UnionBank edged the country’s largest banks led by BDO Unibank headed by Nestor Tan after it offered P55 billion to acquire the retail banking business of Citi in the Philippines last December.

The takeover by the Aboitiz-led bank covers the consumer banking business of Citibank Philippines, which includes its credit card, retail deposit, personal and unsecured loans, and asset management portfolio.