INQUIRER FILE PHOTO
MANILA, Philippines—Seeking to cement its dominance in the local financial industry, BDO Unibank Inc. has announced its planned acquisition of the local thrift banking unit of American financial giant Citigroup.
In a disclosure on Thursday, the country’s largest bank in terms of assets and deposits said it had signed a “definitive” agreement to buy 99.99 percent of Citibank Savings Inc.
“The transaction is still subject to closing conditions and the approval of the Bangko Sentral ng Pilipinas (BSP),” BDO told the local bourse.
No other details were disclosed.
The share price of BDO, the banking unit of taipan Henry Sy, yesterday traded 0.77 percent higher following the announcement. It also outperformed the main index, which closed 0.11 percent stronger.
Citibank Savings has 10 branches in the Philippines—eight in Metro Manila, one in Pampanga, and another in Davao.
Earlier this month, Jose T. Sio, chief financial officer of BDO’s parent firm SM Investments Corp., said the bank would focus on acquiring smaller banks to accelerate the company’s growth.
This comes ahead of the integration of Southeast Asia’s banking system in 2015, when BDO and other major local players will have to compete for market share with their larger regional peers.
BDO is no stranger to acquiring the local branches of foreign lenders. In 2009, BDO acquired 98.81 percent of GE Money Bank.
Simultaneous with, and as a component of, the acquisition of GE Money, BDO issued to GE Capital Philippines Investment Holdings 37.7 million new common shares at a subscription price of P34.45 a share, or for a total of P1.3 billion.
BDO has one of the largest distribution networks in the country. The company has more than 790 operating branches and over 2,100 ATMs nationwide. It also has a branch in Hong Kong as well as 13 representative offices in Asia, Europe, North America and the Middle East.
BDO ranked as the largest bank in terms of total assets, loans, deposits, capital and trust funds under management based on published statements of condition as of June 30, 2013.