UnionBank in talks to take over Citi’s consumer banking assets in the Philippines

Discussions between the two banks are at the preliminary stage.

UnionBank of the Philippines has confirmed that it is in discussions to take over Ciit’s consumer and retail banking assets in the country, a deal that could reportedly be valued at $1b.

UnionBank senior vice president Atty. Joselito Banaag shared that discussions between the bank and Citi are “at a preliminary stage.”

Banaag, who also serves as UnionBank’s general counsel and corporate secretary, added that any transaction between the two banks is subject to negotiation and agreement of conditions, as well as the approval of regulators of the transaction. 

“Accordingly, there can be no assurances that the transaction will be completed at this stage,” Banaag stated in a bourse filing at the Philippine Stock Exchange website.

An exclusive report published earlier named UnionBank as the ‘preferred bidder’ to take over the local consumer and retail banking assets of Citigroup in the Philippines.

The potential sale is reportedly valued at $1b, media reports said, citing anonymous sources. Other bidders remain interested, they added.

Another local bank, the Bank of the Philippine Islands, had earlier expressed interest in possibly acquiring Citi’s assets.

Also Read: The Philippines' oldest bank eyes takeover of Citi's consumer assets

In Mid-April, Citi announced that it is exiting consumer banking in 13 markets, ten of which are in Asia, including the Philippines. The bank instead said that it plans to double down on its wealth management, institutional banking, and corporate banking businesses.