UOB MALAYSIA and Citi Malaysia have announced that they have received regulatory approval by Bank Negara Malaysia (BNM) 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 of Malaya to transfer Citi’s consumer banking assets and liabilities to UOB Malaysia. The transaction is expected to be completed by 4Q2022.
UOB and Citigroup announced the proposed transaction on 14 January 2022; upon completion of the transaction, all of Citi Malaysia’s retail banking and consumer credit card business will be transferred to UOB Malaysia.
All related Citi Malaysia consumer bank employees and its supporting employees are also expected to transfer to UOB Malaysia.
“We greatly appreciate Bank Negara Malaysia’s approval for 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,” remarked UOB Malaysia chief executive officer Ng Wei Wei.
“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.”
According to Ng, the acquisition will also scale up the bank’s retail business with an expanded portfolio and partner ecosystem and will further strengthen 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.”
Meanwhile, Citi Malaysia chief executive officer Usman Ahmed expressed his deep gratitude to BNM 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,” he assured.
“Citi remains deeply committed to Malaysia and we will invest further in our market leading institutional clients franchise to help our Malaysian clients grow in the country and abroad.”
Citi further assured its consumer banking business and wealth customers that the transition to UOB will be smooth and that they will continue to benefit from services and products similar to those they currently enjoy from Citi. – Sept 14, 2022
