UnionBank, Citi clear BSP hurdle
Union Bank of the Philippines received the notice from the Bangko Sentral ng Pilipinas dated 18 July 2022 approving the acquisition
The Bangko Sentral ng Pilipinas has approved UnionBank’s $1 billion acquisition of Citigroup’s local consumer business operations.
UnionBank, in a report to the stock exchange, said it has received the notice from the BSP dated 18 July.
“Union Bank of the Philippines (UnionBank) received the notice from the Bangko Sentral ng Pilipinas dated 18 July 2022 approving the acquisition by UnionBank of Citigroup’s consumer business in the Philippines,” the statement said.
The acquisition involved consumer assets and liabilities, real estate properties and interests of Citi Square Building Corp and 100 percent of the capital stock in Citicorp Financial Services and Insurance Brokerage Philippines Inc.
In an advisory last year, Citigroup said it intended to exit 13 international consumer banking business markets to focus on wealth management.
PCC approval seal
The Aboitiz-led lender announced the acquisition in December 2021.
UnionBank president Edwin Bautista told Daily Tribune’s Straight Talk earlier that the BSP approval was the last hurdle for mega deal.
Last April, the Philippine Competition Commission (PCC) also approved the acquisition by UnionBank of Citibank, N.A. Philippine Branch, Citicorp Financial Services & Insurance Brokerage Philippines Inc. and Citibank Square Building.
The PCC said “the acquisition by UnionBank of assets of Citibank PH and Citi Square and shares in Citicorp will not likely result in substantial lessening of competition.”
“We already have the clearance of the PCC so that’s out of the way. The last remaining one is the BSP okay and BSP really just said ‘well, get all your other approvals first and we will be the last,’” Bautista said.
UnionBank president Edwin Bautista told Daily Tribune’s Straight Talk earlier that the BSP approval was the last hurdle for mega deal.
Citi wanted a bank that can replicate its comfort level of employees and the systems.
“A lot of work is already being done to make sure all the products are mopped completely so nothing falls in between the cracks,” Bautista noted.
“Citi is committed to continue to support us for a period of one year to make sure that all the processes, products and systems are well mopped so there’s going to be a seamless transition,” he added.