WASHINGTON (dpa-AFX) - Citigroup Inc. (C) on Wednesday announced that it has reached an agreement with India's Axis Bank Limited for the sale of Citi's consumer businesses in India for a cash consideration of approximately $1.6 billion.
The transaction is expected to result in the release of approximately $800 million of allocated tangible common equity. The deal forms part of Citi's global exit from its consumer banking franchises in 13 markets across Asia and EMEA that is expected to release approximately US$7 billion of allocated tangible common equity over time.
The sale is expected to close in the first half of calendar year 2023.
The deal involves the sale of consumer banking businesses of Citibank India -credit cards, retail banking, wealth management and consumer loans- and consumer business of Citi's non-banking financial company, Citicorp Finance (India) Limited (asset-backed financing business, commercial vehicle and construction equipment loans and personal loans portfolio).
The sale, however, excludes Citi's institutional client businesses in India. Citi's Banking, Capital Markets and Advisory Group is acting as exclusive financial advisor to Citi in respect of the transaction.
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