Citi announced that it successfully completed the acquisition of substantially all of the subsidiaries of Grupo Cuscatlan from Corporacion UBC Internacional S.A., the subsidiaries’ holding company. Under the terms of their agreement announced on December 13, 2006, Citi acquired Grupo Cuscatlan’s banking operations, some of its insurance operations, and other financial activities for $1.51 billion in cash and Citigroup stock.
Grupo Cuscatlan is one of the leading financial groups in Central America with operations in El Salvador, Guatemala, Costa Rica, Honduras and Panama. It serves more than 45,000 corporate banking customers and 1.2 million consumer banking customers through a distribution network of 202 branches and 263 ATM’s throughout the region. It has approximately 5,000 employees.
Citi also announced that Mauricio Samayoa will remain CEO of Grupo Cuscatlan, reporting jointly to Fernando Quiroz, CEO of Markets & Banking, Latin America and to Raul Anaya, CEO of Consumer Banking, Latin America.
Grupo Cuscatlan is highly complementary to Citi’s operations in Central America, including the recently acquired Grupo Uno, the largest credit card issuer in the region. Taken together, these transactions significantly strengthen Citi’s distribution capabilities and product offerings to serve retail and corporate clients in Central America.
“We are pleased to have obtained all the regulatory approvals permitting us to complete the acquisition. With this integration, we will be able to add Cuscatlan’s excellent experience and local knowledge in the Central America region to Citi’s experience worldwide. We are very proud to welcome Cuscatlan into the great Citi family,” said Manuel Medina Mora, President and CEO of Citi Latin America and Banamex.
“At Grupo Cuscatlan, we are proud to become a part of Citi. The combined strengths of Cuscatlan and Citi present excellent opportunities to better serve our customers. With Cuscatlan’s vast knowledge of the regional market in Central America, plus Citi’s unique international scope and capabilities, we will be able to provide our customers with a combination of innovation and financial strength,” added Mauricio Samayoa, CEO of Grupo Cuscatlan.
Citi has been doing business in Central America for more than 100 years. The company has operations in 25 countries of Latin America, including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama in Central America.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi’s major brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or at www.citi.com.