Citi Sells German Bank
July 12, 2008 – As part of its worldwide business trimming Citibank sold its German banking operation to Credit Mutuel of France for US$7.7 billion. Citibank Deutschland, a profitable retail and lending enterprise with an expansive distribution of 340 branches and 3.3 million customers enjoyed relatively strong market share and its sale came as a surprise in some quarters. However, given Citibank’s focus on fast growing emerging markets the Bank decided to exit the German retail business – watch for more divestitures especially in small markets where Citi has a small presence. As it has in many countries where it has exited the retail business Citibank is maintaining its corporate and investment banking activities. The deal provides Credit Mutuel a solid foothold in Europe’s largest banking market while providing Citibank with much needed cash. According to analysts the sale is worth about US$4 billion in after-tax gains to Citibank.
Posted by Ali Raza on Tuesday, July 22, 2008