Singapore’s DBS has secured regulatory approval to buy Citigroup’s retail banking operations in Taiwan, reported Focus Taiwan, citing the Financial Supervisory Commission (FSC). 

The deal, which was first announced in January this year, includes the retail banking, credit card, mortgage and unsecured lending businesses of Citi. 

According to the initial announcement, subject to customary closing adjustments, DBS agreed to pay Citi cash consideration for the net assets of the acquired businesses and a premium of about TWD19.8bn ($617m).

Approximately 3500 consumer bank workers and support staff are anticipated to transfer to DBS Taiwan once the acquisition is complete, which is anticipated to happen by August 2023.

In a press briefing, FSC Banking Bureau deputy director Lin Chih-chi said that by adding Citi’s 45 locations, the deal will increase DBS’s branch network to 74, with around 60% of them being located in northern Taiwan. 

Additionally, DBS will remove the 66 ATMs currently operated by Citi once the takeover is complete as it does not offer ATM services in Taiwan.

The divesture is part of Citi’s plans to close retail banking business across 14 markets in Asia, Europe, the Middle East and Africa and Mexico to focus on institutional business. 

Last week, the US-based banking group said it will close its Chinese retail banking business and the exit is expected to impact some 1,200 employees. 

Recently, Russian financial services group Uralsib Bank acquired Citi’s retail loan portfolio. 

Earlier this month, the lender wrapped up the deal to sell its consumer business in Bahrain to Ahli United Bank.