As reported by the CNBC-TV18, Axis Bank is all set to acquire Citibank’s retail business in India and a closure of the deal is expected to be finalized by next week.
A $2 or $2.5 billion Deal To Be Closed Next Week
Sources told CNBC-TV18 that “Citibank is set to announce the closure of deal for its consumer business in India next week”.
As a part of deal, which would be the size of something between $2 and $2.5 billion, Citibank will continue to service the customers during the integration period so that the transition is seamless and no one is inconvenienced.
Sources added that “Total size of the deal expected between $2 to $2.5 billion including cash component 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
Earlier it was reported that Axis Bank was most likely to strike an all-cash deal for Citi’s India retail assets.
After beating rivals like Kotak, another private lender which was reportedly “more aggressive” and had submitted a bid lower than that of Axis, Axis Bank emerged as the lead buyer. Before taking the final call, other factors like job security for current Citigroup employees, competition concerns, and more were also considered.