Citi inked a deal with Raiffeisenbank to sell its consumer banking business in the Czech Republic. Citi intends to focus on expanding the services it offers to Czech corporations, banks and public sector clients as well as continuing to service its multi-national clients with operations in Czech and global investors.
The sale is subject to regulatory approvals and includes Citi’s retail banking and cards businesses, consumer banking employees, branches and ATMs in the Czech Republic, which will transfer to Raiffeisenbank upon closing. The transaction is expected to close in Q1 2016, subject to customary closing conditions. The financial terms of the transaction are not material to Citi.
The sale represents yet another step in Citi’s strategy of winding down Citi Holdings by divesting non-core operating businesses and assets in an economically rational manner. The sale also is a part of Citi’s previously announced strategy to accelerate the transformation of the Global Consumer Bank by refining its footprint and streamlining operations to 24 markets where it has the greatest scale and growth potential.
Terms of the transaction were not disclosed. Citi’s Institutional Clients Group advised Citi on this transaction.
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