UOB said the business comprises Citigroup’s unsecured and secured lending portfolios, wealth management and retail deposits.

As part of the proposed acquisition, it said, UOB intends to bring onboard Citigroup’s employees in the consumer business.

“The proposed acquisition will further strengthen and deepen UOB’s Asean franchise,” it said in a statement this morning.

“Citigroup’s consumer business had an aggregate net asset value of approximately S$4 billion and a customer base of about 2.4 million as of June 30, 2021, and generated income of approximately S$0.5 billion in the first half of 2021.

“Excluding one-off transaction costs, the proposed acquisition is expected to be immediately accretive to UOB’s earnings per share (EPS) and return on equity (ROE).”

It said the total cash consideration for the proposed acquisition would be calculated based on an aggregate premium equivalent to S$915 million plus the net asset value of the consumer business as at completion.

Completion of the acquisition will be conditional on obtaining regulatory approvals relevant to each country and in Singapore.

It is estimated that completion will take place between mid-2022 and early 2024, it said, depending on the progress and outcome of the regulatory approval process.