Citigroup to Acquire ABN AMRO’s Direct Custody, Securities Clearing, And Fund Services Business in Eight Markets
Award-Winning, Web-Based Corporate Banking Platform Expands Language Capability, Functionality and Usability
New York , October 18, 2004 - Citigroup (NYSE: C) today announced that it is acquiring ABN AMRO’s direct custody, securities clearing, and fund services businesses in selected European and Asian markets. Upon completion, these ABN AMRO businesses will join the Global Transaction Services unit (GTS) in Citigroup’s Global Corporate and Investment Banking Group.
The transaction is expected to broaden the product capabilities and client growth opportunities for GTS, one of Citigroup’s publicly reported business units. 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 in the order of $240 billion of assets under custody to GTS’s $7.3 trillion custody portfolio.
While the terms of the transaction were not disclosed, the transaction is expected to be accretive to earnings in the first year. The transaction is expected to close within the next 90 days subject to customary regulatory approvals in applicable markets.
“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. “This acquisition also underscores Citigroup’s commitment to offer enhanced cash management, trade, fund and securities services capabilities to clients around the world, and reinforces the firm’s willingness to invest for growth in this key sector of the market.”
Frank J. Bisignano, Chief Executive of Citigroup's Global Transaction Services business said, “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. We look forward to augmenting the expertise within our own institution with the talent and experience of the ABN AMRO team as we continue to leverage on behalf of our clients an integrated global platform and embedded local market service.”
It is expected that, over time, Citigroup will combine ABN AMRO’s domestic custody operations with its current Global Transaction Services operations in each of the respective markets and that ABN AMRO operational and servicing staff and management will become members of the Citigroup organization.
About Citigroup
Citigroup (NYSE: C), the preeminent global financial services company
with some 200 million customer accounts in more than 100 countries,
provides consumers, corporations, governments and institutions with
a broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, insurance,
securities brokerage, and asset management. Major brand names under
Citigroup's trademark red umbrella include Citibank, CitiFinancial,
Primerica, Smith Barney, Banamex, and Travelers Life and Annuity.
Additional information may be found at: www.citigroup.com.
About Citigroup® Global Transaction Services
Citigroup® Global Transaction Services is a leading provider
of integrated cash management, trade, fund and securities services
for corporations, financial institutions, intermediaries and governments
around the world. With over $ 121 billion in average liability balances,
more than $7.3 trillion in assets under custody and the largest
proprietary branch network, Citigroup’s award-winning operating
systems and Internet-based delivery channels enable clients to manage
and monitor working capital and investments more efficiently, streamline
transaction processing cycles, and re-engineer receivables and payment
processes. Citigroup® Global Transaction Services provides clients
with access to Citigroup’s full range of capabilities and
solutions along with an on-the-ground presence and in-depth knowledge
of more than 90 local markets. For additional information, see www.transactionservices.citigroup.com.
