Shinan Financial halts studying Citigroup's retail banking business Assets up for sale different from what Shinhan had expected
Translated by Kim So-in 공개 2021-06-04 08:28:37
이 기사는 2021년 06월 04일 07:58 thebell 에 표출된 기사입니다.
Shinhan Financial Group has temporarily halted its feasibility study of acquiring Citigroup’s retail banking operations.Shinhan Financial Holdings has suspended a data collection and analysis process for Citigroup’s Asia-Pacific operations, industry sources said Wednesday. The company has reportedly concluded that the burden is too high in terms of benefits of the acquisition and the efficiency of the acquisition method.
Shinhan started studying the target in March after media reports on the Citigroup’s restructuring in a bid to nimbly participate in a possible sale of Citigroup's assets.
Shinhan has especially focused on studying the size and value of Citigroup's retail banking business in the Asia-Pacific region, including asset status, market competitiveness and possibility of mergers and acquisitions (M&A).
However, the company has temporarily halted its studying after Citigroup announced its decision to sell its consumer banking operations in the Asia-Pacific region because the businesses and assets put up for sale were reportedly quite different from what Shinhan had expected.
Also, the U.S. banking giant has put forward the so-called “turnkey sale” condition in which Shinhan has to take over assets in other countries as well regardless of its preferences. It is said that Shinhan would have to purchase non-core assets like wealth management business in order for it to purchase the retail banking business.
Shinhan will take a wait-and-see stance for now. It plans to decide whether to join the race by observing how other prospective buyers react instead of participating in the deal from the beginning. Citigroup may loosen terms and conditions of the sale if it fails to attract positive response from potential buyers.
Citigroup will exit consumer banking in 13 countries, mostly in Asia, including Australia, China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan, Thailand and Vietnam as part of its ongoing strategic review.
Shinhan has expanded its businesses in the overseas markets through active M&As. It has interest in Citigroup’s retail banking operations in some of Southeast Asian countries including Vietnam, Indonesia, and Thailand. It has strengthened its foothold in Vietnam following its takeover of the retail unit of AZN Vietnam, the Vietnamese unit of the Australian banking group, in April 2017. (Reporting by Seul-bong Go)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [한미 오너가 분쟁]새 경영진 임종윤·종훈 형제의 일성 "네버 어게인"
- JB금융, 얼라인에 판정승…이사회 2석만 내주며 선방
- [Company Watch]'TGV 첫 양산' 필옵틱스, 글라스 패키지 시장 선점
- 폴라리스오피스, 한국 AI PC 얼라이언스 참여
- 이에이트, 생성형 AI 접목 '스마트 팩토리 솔루션' 공개
- 일반석서 주총 관람한 한채양 이마트 대표, ‘책임경영’ 의지 피력
- AI매틱스-한국교통안전공단, AI 기반 버스 사고 예방 MOU
- [한미 오너가 분쟁]'임종윤·종훈' 형제의 승리, OCI-한미 통합 결렬
- 휴온스 이사회 입성한 오너3세, 경영 참여는 'NO'
- 필옵틱스, 업계 첫 TGV 양산 장비 공급