NAB to buy Citi's Australia consumer unit in $880mn deal
- Citi's consumer business in Australia had lending assets of A$12.2 billion and deposits of A$9 billion at the end of June
National Australia Bank said on Monday it would buy Citigroup's Australian consumer business in a deal valued at around A$1.2 billion ($882.24 million), creating the second-largest credit card provider in the country.
Under terms, 800 Citi employees and its senior management will join NAB, although there would be no transfer of technology systems or platforms. NAB said it will invest in a new technology platform to support the combined business.
"The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards," said NAB Chief Executive Officer Ross McEwan.
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Citi's consumer business in Australia had lending assets of A$12.2 billion and deposits of A$9 billion at the end of June.
The Australian lender said the deal is expected to result in annual pre-tax cost savings of A$130 million over three years.
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