SINGAPORE: DBS Group, Southeast Asia’s largest financial institution, has agreed to buy Citigroup’s consumer banking business in Taiwan by way of a switch of belongings and liabilities and can take over the three,500 workers employed in the retail arm.
It can pay money for the web belongings of Citibank’s Taiwan consumer banking business plus a premium of S$956 million, DBS mentioned on Friday (Jan 28).
DBS mentioned that the proposed acquisition makes “strategic sense” as a result of it can assist scale up its Taiwan operations in a market that’s engaging for its wealth and know-how sectors.
The acquisition will even assist speed up DBS Taiwan’s development by not less than 10 years, making it Taiwan’s largest overseas financial institution by belongings, the lender mentioned.
“Notwithstanding COVID-19, we imagine that Asia’s long-term development developments stay intact,” mentioned DBS Group CEO Piyush Gupta.
“Citi Consumer Taiwan is a extremely engaging, high-returns business that’s anticipated to contribute not less than S$250 million yearly in web revenue to DBS after COVID-19 restoration. Post-transaction, DBS Taiwan can be propelled to the highest ranks of Taiwan’s banking sector,” he added.
Subject to regulatory approvals and migration, the goal completion date is anticipated in the center of 2023.