10/04/2014 – El Confidencial
After buying Spanish delegation of Citibank, Banco Popular is planning to combine credit card debt proceeding from the bank with its own debt in one lot. U.S. fund Centerbridge seems the most seriously interested in purchase of the cluster. The entity chaired by Ángel Ron will save 45 offices of Citibank for itself.
Popular acquires the offices and credits for between €400 and €650 million (…). Compared with the entity´s credit volume, the lot of Citibank is tiny, however the foreign bank controls 10% of revolving credit with its cards. Popular owns around 3.7 million cards, while Citi about 1.1 million.
(…) The transaction would show Popular in a good light while facing the upcoming stress test by the ECB. (…).
The other part of the Citibank acquisition are 45 offices in excellent locations that Popular will integrate with its own network. The affiliates employ 300 workers, manage €2.3 billion in accounts and deposits and €2.1 billion in assets. They serve between 105.000 and 110.000 clients of the mass affluent group, out of which 20.000 are assigned as holders of Citi Gold card (granted in case of possession of more than €75.000 in property).
Original article: El Confidencial (by Eduardo Segovia)
Translation: AURA REE