UOB to Buy Citigroup Assets in Southeast Asia

   By Ben Otto 
 

United Overseas Bank Ltd. will acquire the consumer-banking business of Citigroup Inc. in four Southeast Asian countries in a multibillion-dollar deal.

UOB said Friday that it would acquire the U.S. bank's consumer-banking businesses in Indonesia, Malaysia, Thailand and Vietnam, paying a premium of S$915 million (US$679.7 million) plus the net asset value of the businesses at the time of completion. The businesses' aggregate net asset value at the end of June was about S$4.0 billion, UOB said.

Singapore-based UOB plans to fund the deal via excess capital, and said it expects incremental annual income from the deal to be about S$1 billion.

UOB said the deal would double its existing retail customer base in the four countries. It plans to bring onboard Citi employees; the businesses employ about 5,000 employees, serving a customer base of more than 2 million.

The acquisition is "a great opportunity that comes at the right time," said Wee Ee Cheong, deputy chairman and chief executive of UOB. "UOB believes in Southeast Asia's long-term potential and we have been disciplined, selective and patient in seeking the right opportunities to grow."

UOB expects the deal to close in each country between mid-2022 and early 2024, subject to regulatory approvals.

Write to Ben Otto at [e-mail]

(END) Dow Jones Newswires

January 13, 2022 20:34 ET (01:34 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.