Citi has entered into a definitive agreement with Marginalen, a provider of banking, business administration, business law, HR and debt collection services, to sell its Citi branded Swedish consumer finance business, representing approximately $850m in gross assets. The transaction is part of the Citi's strategy to focus on its core franchise.
Cit said that the transaction does not affect its Swedish corporate and investment banking business, which will continue to provide global services to its clients, including major companies, financial institutions and the public sector, as well as subsidiaries of foreign multinational companies.
Citi said that it is committed to working with Marginalen on a seamless transfer of customer accounts, ensuring uninterrupted continuation of service.
Clas Ronnlov, country officer for Sweden at Citi, said: “We are pleased with this transaction and believe the outcome is a positive one for the customers of Citibank’s Swedish consumer finance business as well as for the employees. Sweden remains an important market for Citi. We have been here since 1973, and this transaction allows us to focus on our corporate and investment banking business, where our talented teams remain central to Citi’s global strategy.”
The transaction is structured in two phases and is expected to close over the next eight months, subject to regulatory approval and other customary conditions.