Citigroup to acquire ABN Amro''s businesses
By Our Corporate Bureau | 19 Oct 2004
Mumbai: Citigroup (NYSE: C) has announced that it is acquiring ABN AMRO''s direct custody, securities clearing, and fund services businesses in select European and Asian markets including India. Upon completion, these businesses will join the ''global transaction services'' (GTS) unit in Citigroup''s ''global corporate and investment banking group.
The move is expected to broaden product capabilities and client growth opportunities for GTS, one of Citigroup''s publicly reported business units. 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 nearly 550 financial institution and corporate accounts. The transaction should add $240 billion of assets under custody to GTS''s $7 trillion custody portfolio.
In yet to be disclosed terms, the transaction is expected to be accretive to earnings in the first year. It is expected to close within the next 90 days subject to customary regulatory approvals where applicable.
"This acquisition will enable us to extend global transaction services'' solution set and servicing capabilities in key markets to meet the needs of our client base." According to Robert Druskin, CEO of Citigroup''s global corporate and investment banking group, New York.
Says Sanjay Nayar, CEO India and area head for Bangladesh, Srilanka and Nepal, "This transaction strengthens Citigroup''s market leadership in the custody and securities clearing business in India. It further expands our transaction banking offering to the domestic mutual funds industry."