According to CNBC-TV18, Axis Bank is all set to acquire Citibank’s retail business in India. A final closing is expected by the end of next week.
A $2 or $2.5 billion Deal To Be Closed Next Week
Citibank is set to announce the closing of its consumer business in India next week, according to CNBC-TV18.
Citibank will continue to service customers during the integration period, which is expected to be between $2 and $2.5 billion in size, so the transition will be seamless and no one will be inconvenienced.
The total value of the deal is expected to range between $2 and $2.5 billion, including cash components and incentives. Citi may continue to service customers during the integration period with Axis as part of the deal”.
With 35 branches in India, the global bank has close to 4,000 employees. The bank has a customer base of 2.5 million account holders with 1.2 million loan accounts.
Axis Emerged As Lead Buyer, Beating Rivals
Citi’s retail assets in India are most likely to be acquired by Axis Bank through an all-cash deal.
The leading buyer was Axis Bank after beating rivals like Kotak, another private lender which had submitted a bid that was lower than Axis’. Before taking the final call, other factors like job security for current Citigroup employees, competition concerns, and more were also considered.