The Hindu Business Line : Citigroup to acquire ABN Amro businesses

The transaction includes ABN Amro's domestic custody business in the Netherlands and its network domestic custody business in Russia, Greece, India, Indonesia, South Korea, Poland and Taiwan, servicing approximately 550 financial institutions and corporate accounts, according to a press release.

`Domestic custody' provides a range of securities-related services including safekeeping and settlement, reporting, corporate actions, dividends collection and distribution, proxy voting, tax reclaim services, fund administration as well as providing market news and information.

"The sale is part of ABN Amro's strategy to allocate resources in its wholesale clients strategic business unit to core businesses that are fully aligned with its client-led model. It does not involve the bank's global custody activities which operate through ABN Amro Mellon Global Securities Services," said an ABN Amro press release.

"This was a sub-scale business in around eight countries. Since scaling up organically was not a viable proposition, ABN Amro decided to sell this relatively small business," the release said.

With the acquisition, these ABN Amro businesses will join the Global Transaction Services unit (GTS) in Citigroup's Global Corporate and Investment Banking Group, it said.

GTS is one of Citigroup's publicly reported business units.

The deal, which is likely to be completed in the next three months, is expected to add around $240 billion worth of assets under custody to GTS's $7-trillion custody portfolio, the release said.

Over time, Citigroup will combine ABN Amro's domestic custody operations with its current GTS operations. ABN Amro's operational and servicing staff and management will become members of the Citigroup organisation.

More Stories on : Foreign Banks | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Exide to power Afghanistan with its wind, solar energy

Priority for infrastructure, Manmohan tells investors — Transparent regulatory framework soon

Jindal South to buy controlling stake in Siscol

Tata Chemicals posts higher net in Q2 at Rs 87.19 cr — Bangladesh venture to cost $450-500 million

New class of ICs with varied applications

Crisil buys Irevna for Rs 43 cr

Late-hour buying props up Sensex

Citigroup to acquire ABN Amro businesses