Citigroup to Sell German Banking Unit for $7.7 billion

http://www.insidearm.com/news/00024226-citigroup-to-sell-german-banking-unit-for/

Citigroup said Friday that it will sell its German retail banking operation to France’s Credit Mutuel for $7.7 billion in cash. The sale is expected to close in the fourth quarter, pending regulatory approval.

In a press release, Citigroup said the deal includes its Duesseldorf, Germany-based Citibank Privatkunden AG & Co. KGaA, along with affiliates of the Citibank Germany division.

After taxes, Citigroup said that the deal would net the company $4 billion. Last year, Citibank Germany earned $573.3 million in profits and counted assets of around $1.5 billion.

Credit Mutuel is France’s second largest retail bank with nearly 15 million customers and more than 5,000 branches, according to the bank’s Web site. In 2007, it earned $4.3 billion on revenues of $16.6 billion.

Citigroup to Sell German Banking Unit for $7.7 billion

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