Aboitiz-owned Union Bank of the Philippines announced it has signed a P55 billion agreement to acquire US-based Citi’s consumer banking in the Philippines.In its announcement, Thursday, Dec. 23, UnionBank said it will pay Citi cash consideration for the net assets of the acquired businesses subject to customary closing adjustments plus a premium of P45.3 billion or $908 million, and P9.7 billion equity for a total of P55 billion.
Citi said subject to the timing of regulatory approvals, completion is expected in the second half of 2022. “This acquisition further cements our position as a leading bank in the Philippines, as well as fast-tracks our growth aspirations in the retail banking segment,” according UnionBank chairperson, Erramon Isidro M. Aboitiz, in a statement.
“We look forward to this game- changing opportunity to leapfrog our credit card business and significantly expand our banking business in the higher end segment of the consumer market,” said Bautista.“We intend to learn from Citi’s expertise to enable UnionBank to effectively build on its success and take the business to the next level.