Axis Bank-Citi agreement gets approved by the Competition Commission

27 Jul 2022 , 09:06 AM

In one of the biggest transactions in the Indian financial services industry, the Competition Commission has authorized Axis Bank's proposed acquisition of Citi's consumer division.

According to the March 30 announcement of the Rs12,325 crore agreement, Axis Bank would take over Citi's wealth management, personal loans, and credit card operations that cater to the wealthy market segment.

The regulator declared in a tweet on Tuesday that it had approved "Axis Bank's acquisition of Citibank, N.A.'s and Citicorp Finance (India) Limited's undertakings comprising of their consumer banking activities."

The Competition Commission of India (CCI), which monitors unfair commercial practices across industries, must approve deals that exceed a particular level.

A definitive agreement for the transaction between Axis Bank and Citi was inked in March. It is anticipated to close by September 2024 and will give Axis Bank access to 30 lakh additional clients.

Axis Bank Ltd., Citibank, N.A. (acting through its India office), and Citicorp Finance (India) Ltd. are the parties to the transaction.

According to the transaction summary posted on the CCI website, "The transaction involves the proposed slump sale by Citi of an undertaking comprising its consumer banking activities to the acquirer on a going concern basis."