National Australia Bank to Buy Citigroup Australia Consumer Unit
- Citigroup’s Fraser says transaction shows urgency of strategy
- Deal subject to regulatory approval, March completion targeted
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Citigroup Inc. has sold the first of 13 markets Chief Executive Officer Jane Fraser put on the block, agreeing a deal to offload its Australian consumer unit to National Australia Bank Ltd.
The Australian lender will pay the U.S. bank cash for the net assets of the Citigroup Consumer Business plus a premium of A$250 million ($184 million), according to a statement from National Australia Monday. The bank said its net assets totaled A$3.2 billion, taking the implied valuation as of June to A$3.45 billion. The required equity is approximately A$1.2 billion, National Australia said in the statement.