Citigroup back on the acquisition warpath
Citigroup (the world’s #1financial firm) made the acquisitions news twice today.
First, the company bought Egg Banking from the UK Prudential PLC for $1.1 billion. Egg is an online banking service with over 3 million customers. Founded in 1998, it is the world’s largest online bank, with customers mainly in the UK, and services including credit cards, savings and checking accounts, mortgages and insurance. Prudential PLC (no relation to the US insurer. Prudential Financial) will continue to supply insurance services to Egg customers.
Citigroup now has about a million UK customers, so the move will nearly quadruple its presence in the market. Expansion of its credit card operation, alreday teh world leader, , is a big motivation. The price is a bargain, nearly half of its valuation a year ago. Prudential is struggling, especially in its UK insurance operations.
At the same time, Citigroup announced it will organize a holding company in Japan, putting together its retail and corporate banking holdings. The announced attention is to gear up for expansion and further acquisitions in Japan, the world’s #2 economy.
Other Citigroup deals at the end of last year:
Bought Central American banking company Grupo Cuscatlan
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Bought Central American credit-card issuer Grupo Financiero Uno
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Bought a 20% stake in a big Turkish bank, Akbank TAS
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Took part in a group buying 86% Guangdong Development Bank in China.
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Citigroup, after a pause a few years ago, is definitely back into the cycle of international acquisitions across the globe.
9:26:18 PM 
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