The entire value of the acquisition is Sg$4.9 billion ($3.6 billion).
As a part of the deal, round 5,000 Citi workers are anticipated to switch to UOB, the lenders stated.
The sale is a part of Citi’s plans to streamline its world operations and concentrate on institutional purchasers, moderately than client banking.
The financial institution beforehand introduced it was exiting client franchises in a number of markets throughout the Asia-Pacific and elsewhere.
Mark Mason, Citi’s chief monetary officer, stated that “the sale of those 4 client markets, together with our beforehand introduced transactions, exhibit our sense of urgency to execute our strategic refresh”.
Wee Ee Cheong, UOB’s deputy chairman and chief government officer, stated the financial institution “believes in Southeast Asia’s long-term potential and we’ve been disciplined, selective and affected person in in search of the fitting alternatives to develop”.
The transaction is anticipated to be accomplished between mid-2022 and early 2024 relying on the progress of the regulatory approval course of, Citi stated.
Indonesia, Malaysia, Thailand and Vietnam are amongst Southeast Asia’s largest markets, with a mixed inhabitants of greater than 470 million folks and residential to a quickly rising center class.