National Australia Bank has agreed to buy Citigroup’s Australian consumer banking unit in a deal valued at nearly $900 million.
NAB has entered into a sale and purchase agreement with Citi to buy its Australia consumer unit in a deal valued at around A$1.2 billion ($880 million), according to a statement, pending regulatory approval.
Citi's Australian consumer unit had lending assets of A$12.2 billion and deposits of A$9 billion as of the end of June this year.
«The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards,» said NAB chief executive Ross McEwan.
Deal Terms
Under the deal’s terms, 800 Citi employees and its senior management will join NAB.
There will also be no transfer of technology systems or platforms from Citi and NAB said it would invest in new tech platforms to support the combined business.
NAB emerged as the ultimate buyer after reports of interests from others such as ANZ, ING Bank, Macquarie, Bank of Queensland and local insurer Suncorp.
