Axis bank’s acquisition of Citi’s consumer business in India

The Competition Commission of India has approved the ₹12,325 deal of Axis Bank’s acquisition of Citibank’s consumer businesses in India, the authority announced on Tuesday, July 26. With CCI’s approval, the Axis Bank-Citi merger deal has now moved a step closer to reality.

In March this year, private lender Axis Bank said it had agreed to acquire Citi India’s retail assets for $1.6 billion. Axis Bank CEO and MD Amitabh Chaudhry had said there will be no milestone payments in deal, and a cash deal of ₹12,325 crore will be payable only once entire business gets transferred from Citi Bank.

The CCI approval of Axis Bank’s takeover of Citi India’s retail assets was announced via the commission’s Twitter handle. “Commission approves acquisition of Citibank, N.A.’s and Citicorp Finance (India) Limited’s undertakings comprising of their consumer banking activities by Axis Bank,” the CCI said on Twitter.

Under the agreement between Axis Bank and Citi India, the former will acquire the foreign company’s consumer business in the country. It was said at the time of the announcement of the deal that Axis would also pay another ₹1,200 crore to aid the transaction. “Axis Bank consolidates its position amongst the large private lenders by entering into an agreement to acquire Citibank’s consumer businesses covering loans, credit cards, wealth management and retail banking operations in India, in line with its growth ambitions,” Axis Bank had said on March 30.