Citigroup, which has been shedding some of its retail operations as part of a global revamp, is in advanced talks with Taiwan’s Fubon Financial Holding for a sale of its mainland China consumer business, people familiar with the matter said.
Taipei-based Fubon has emerged as the likeliest buyer after outbidding rivals, and the two lenders are negotiating the terms of a potential transaction, the people said, asking not to be identified as the information is private. Both are aiming to sign an agreement in the coming weeks and the assets could be valued at about $1.5 billion, the people said.
A deal would help Fubon strengthen its foothold in the mainland, where it acquired a controlling stake in Shanghai-based First Sino Bank in 2014 and later changed its name to Fubon Bank China, according to its
Discussions are still ongoing and no final decision has been made, the people said, adding Citigroup could still decide to enter into talks with other bidders if deliberations with Fubon don’t lead to an agreement. Representatives for Citigroup and Fubon declined to comment.
The China asset sale is part of a reorganization kicked off by Citigroup Chief Executive Jane Fraser, who took over in March. With a goal to create a leaner company, she has been paring far-flung consumer operations and focusing more on beefing up high-growth businesses such as wealth management.
Under the restructuring, she’s sought to dispose of retail banking operations in 13 countries across Asia and Europe.
This month, the firm announced it would exit its consumer, small-business and middle-market banking businesses in
Last week, Citigroup
Fraser’s vision involves combining Citigroup’s U.S. consumer and global wealth arms into one division, breaking institutional operations into three main components and creating a new holding unit — dubbed “legacy franchises” — for assets and operations tagged for disposal.
