KUALA LUMPUR: UOB Malaysia and Citi Malaysia have received regulatory approval from Bank Negara Malaysia for UOB's acquisition of Citi's consumer banking business in Malaysia.
Following the approval, UOB Malaysia and Citi Malaysia will apply for a vesting order from the High Court to transfer Citi's consumer banking assets and liabilities to UOB Malaysia.
The transaction is expected to be completed by the fourth quarter of 2022.
UOB Malaysia chief executive officer (CEO) Ng Wei Wei expressed her appreciation to the central bank for the approval of the acquisition.
"For over 70 years, UOB has been part of Malaysia's growth journey, and this acquisition further underscores our confidence in the country's long-term potential.
"Citi's consumer business in Malaysia, as well as in other markets of Thailand, Indonesia, and Vietnam, enhances UOB's regional franchise, which will benefit all UOB customers, providing them with greater connectivity and higher brand recognition," she said in a statement.
She added that the acquisition would also scale up its retail business with an expanded portfolio and partner ecosystem.
"It further strengthens UOB Malaysia's outreach to customers through a wider network of branches and digital touchpoints.
"We look forward to welcoming Citi colleagues to the UOB family. Together, we will create long-term value for our enlarged customer base in Malaysia," said Ng.
UOB and Citigroup announced the proposed transaction on January 14 this year.
Upon completion of the transaction, Citi's retail banking and consumer credit card businesses in the country will be transferred to UOB.
Citi's related consumer bank employees and supporting employees are also expected to transfer to UOB.
"On behalf of Citi, I would like to express our deep gratitude to Bank Negara Malaysia for granting its approval for Citi to sell its consumer banking business to UOB.
"We will continue to seamlessly serve our consumer customers until the remaining part of the sale process is completed and will communicate on the date for the legal transfer in due course," said Citi Malaysia CEO Usman Ahmed.
Source: https://www.nst.com.my/business/2022/09/831217/uob-malaysia-citi-malaysia-obtains-bnm-approval-acquisition-citis-consumer