Citi Securities and Fund Services, a division of
) declared its foray into a strategic agreement with
ING Groep NV
) 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
) 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
) 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
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
ING GROEP-ADR (ING): Free Stock Analysis
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