UnionBank to close Citi deal next month

Aboitiz-led Union Bank of the Philippines is expected to close the acquisition of the consumer banking business of global banking giant Citi in the country as early as next month after getting the approval of the Bangko Sentral ng Pilipinas (BSP).

UnionBank president and CEO Edwin Bautista told The STAR that the listed bank has already obtained the BSP approval. “We already got regulatory approval, closing of the transaction will happen very soon,” he said.

The listed bank informed the Philippine Stock Exchange (PSE) that the BSP has issued a notice dated July 18, approving the acquisition by UnionBank of Citigroup’s consumer business in the Philippines.

As stated in the notice from the regulator, the acquisition is composed of selected consumer assets and liabilities, real estate properties and interests of Citi Square Building Corp. as well as 100 percent of the capital stock in Citicorp Financial Services and Insurance Brokerage Philippines Inc.

For his part, UnionBank treasurer and head of global markets Jose Emmanuel Hilado said the deal could be completed as early as next month.

“We expect to close the transaction in the next few weeks. If we can finish all the closing documents, we should be able to take over by August,” Hilado told The STAR.

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.

However, Citibank Philippines will retain institutional accounts after the transaction.

During the 2022 Aboitiz Leaders Conference held last Feb. 10, Aboitiz Group president and CEO Sabin Aboitiz said that the acquisition of Citi’s consumer banking business in the Philippines brought with it close to one million in high-end customers. “2021 was the strongest year for UnionBank – not only because it delivered on its financial targets, but also because it hit major tipping points in its digital strategy,” Aboitiz said.

Aboitiz, who is also a director of UnionBank, said the listed bank posted another record year in the onboarding of new customers, accelerating the acquisition and adding 2.5 million to the bank’s customer base.

“Capping off the year was another major milestone when UnionBank was announced as the winning bidder to acquire the consumer banking business of American banking giant Citi in the Philippines,” Aboitiz said.