US banking group Citi has brokered a deal with DBS to divest its retail banking operations in Taiwan.
As per the deal, Singapore’s DBS will pay cash consideration for the net assets of the acquired operations along with a premium of approximately $715m.
The deal includes Citi’s retail banking, credit card, mortgage, and unsecured lending businesses in the country.
Additionally, nearly 3,500 of Citi’s staff in Taiwan are expected to transfer to DBS.
Notably, Citi will continue to operate its institutional business in the county.
The divesture is part of Citi’s plans to exit 13 retail banking operations in markets across the Asia Pacific and EMEA, which will release nearly $7bn.
Citi’s deal with DBS is expected to release approximately $800m of allocated tangible common equity.
Citi Asia Pacific CEO Peter Babej said: “We are very pleased to announce this transaction with DBS, a leading organisation with a strong consumer growth strategy in Taiwan which we are confident will provide our customers and employees with excellent opportunities.
“For Citi, this transaction will enable additional investment in our strategic focus areas, including our institutional businesses in Taiwan, which remains a priority market for our firm.”
The announcement comes after Citi decided to sell its operations in Indonesia, Malaysia, Thailand, and Vietnam to Singapore’s United Overseas Bank.
The deal followed Citi’s $908m deal to divest its Filipino retail banking operations to UnionBank.