The Aboitiz-controlled Union Bank of the Philippines (UBP) rocketed to a new all-time high as it confirmed it was in the early stages of negotiation with Citigroup Inc. for the acquisition of the latter’s consumer banking business in the Philippines.
UBP jumped 6.42 percent to P111 with P43.7 million in turnover, a day after Bloomberg reported that it was the “preferred buyer” of Citigroup’s local assets.
But UBP, the 10th largest bank in the country based on assets, cautioned that taking over Citi’s retail services, under Citibank, was not a sure thing.
“The discussions between the bank and Citi are at a preliminary stage, and any transaction in relation to the foregoing subject to, among other things, the completion of satisfactory due diligence, the negotiation and execution of definitive transaction documents, satisfaction of the conditions contained therein and the approval by the regulators of the transaction,” said UBP SVP and general counsel Joselito Banaag.
“There can be no assurances that the transaction will be completed at this stage,” he added.