Citigroup buys ABN Amro domestic custody business
GLOBAL – Citigroup is to buy parts of ABN Amro’s domestic custody business, including operations in the Netherlands, Greece, Poland and Russia, for an undisclosed sum.
Citigroup said it has an agreement to buy the Dutch bank’s direct custody, securities clearing, and fund services businesses in eight European and Asian markets. The deal does not include the ABN Amro Mellon business.
“Upon completion, these ABN Amro businesses will join the Global Transaction Services unit in Citigroup's Global Corporate and Investment Banking Group,” Citigroup said.
"This acquisition will enable us to extend Global Transaction Services' solution set and servicing capabilities in key markets to meet the needs of our client base," said Robert Druskin, chief executive officer of Citigroup's global corporate and investment banking group.
GTS CEO Frank Bisignano added: "This transaction will significantly strengthen Citigroup's market position in the Netherlands, and enhance our client delivery model across Europe and Asia with local servicing capabilities and expertise.”
The transaction includes ABN Amro's domestic custody business in the Netherlands and its network domestic custody business in Russia, Greece, India, Indonesia, South Korea, Poland and Taiwan, servicing approximately 550 financial institution and corporate accounts.
The transaction should add around 240 billion dollars of assets to GTS's 7.3 trillion-dollar custody portfolio.
“The sale is part of ABN Amro's strategy to allocate resources in its Wholesale Clients strategic business unit to core businesses that are fully aligned with its client led model,” ABN Amro said.
It added: “Financial details of the transaction will not be disclosed though the sale of this business will not impact on the bank's outlook.”