National Australia Bank agreed to buy Citigroup’s Australian consumer business for about A$1.2 billion ($882 million).
The Australian lender will pay the U.S. bank cash for the net assets of the Citigroup Consumer Business plus a premium of A$250 million, according to a statement from National Australia Monday. The bank said its net assets totaled A$3.2 billion, taking the implied valuation to A$3.45 billion. The required equity is approximately A$1.2 billion, National Australia said in the statement.
The deal would make National Australia one of the country’s leading credit card players along with Commonwealth Bank of Australia. For Citigroup, it would mark a first step in Chief Executive Jane Fraser’s plan to exit 13 retail markets across the Asia-Pacific region, Europe and the Middle East.
“As this transaction shows, we are moving forward with urgency as we refresh our strategy and execute the decisions we have already made as part of that effort,” Fraser said in a separate statement.
About 800 Citigroup employees are expected to join National Australia. The proposed acquisition is subject to regulatory approval.
