Citi Set to Buy ING's Business - Analyst Blog
April 29 2013 - 5:50AM
Zacks
Citi Securities and Fund Services, a division of
Citigroup, Inc. (C) declared its foray into a
strategic agreement with ING Groep NV (ING) to
purchase its custody and securities services business. However, the
provisions of the deal have not been revealed. Citi and ING expect
to finalize the deal in the first quarter of 2014.
The transaction currently awaits regulatory approvals and
clearances. It includes local custody and securities services
businesses of ING, which are located in Slovakia, Hungary, the
Czech Republic, Russia, Romania, Bulgaria, and Ukraine. Following
the completion of this acquisition, the reach of Citi’s custody
network will broaden to over 95 markets. Further, the company’s
proprietary custody network will expand to 62 countries.
This deal will facilitate Citi to offer services related to
comprehensive securities to its investors, intermediaries and
issuers by strengthening its presence across the nation. Further,
Citi’s clients will be able to access its global banking network.
Moreover, this operation will assist customers to avail efficient
processing and consistent services across various markets.
Citi’s Securities and Fund Services business division furnishes
customized services to its institutional issuers, intermediaries
and investors across different continents.
On the other hand, ING, a leading provider of custody services,
which operates its business across seven Central and Eastern Europe
(“CEE”) markets, currently represents €110 billion in assets under
custody.
Recently, Citi entered into a definitive agreement with
Best Buy Co., Inc. (BBY) to issue and manage cards
under the latter’s brand in the U.S. The deal constitutes Best
Buy’s home brand of cards. Additionally, Citi inked a deal with
Capital One Financial Corp. (COF) to acquire
roughly $7 billion of Best Buy’s private label and card loan
portfolio. These agreements are expected to be completed in the
third quarter of 2013, subject to customary closing conditions.
Citi currently carries a Zacks Rank #3 (Hold) while ING carries a
Zacks Rank #4 (Sell).
BEST BUY (BBY): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
CAPITAL ONE FIN (COF): Free Stock Analysis Report
ING GROEP-ADR (ING): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Capital One Financial (NYSE:COF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Capital One Financial (NYSE:COF)
Historical Stock Chart
From Jul 2023 to Jul 2024