Mortgage Business
Big four confirms it s looking at Citi acquisition By Annie Kane 14 July 2021
A major bank has confirmed that it is in discussions with Citigroup about acquiring its Australian consumer business.
National Australia Bank (NAB) has confirmed that it is in discussions to buy Citi s consumer business, which was put up for sale in April of this year.
According to the major bank, there is no certainty these discussions will lead to a transaction , however NAB has said that it will update the market further if and when appropriate . NAB regularly assesses opportunities to acquire businesses that support its growth strategy in core banking markets, the bank said in an ASX statement. Earlier this year, NAB bought neo-bank 86 400 for its direct-to-consumer brand, UBank.
As NAB prepares to report on its 1H21 Financial Results, Chief Operating Officer Les Matheson reflects on work over the past six months to welcome colleagues back to commercial offices and transition to hybrid working.
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National Australia Bank is set to acquire neobank 86 400 in a $220 million deal.
NAB already had a 18.3% stake in 86 400.
It comes at a tough time for the Australian neobank experiment, with vanishingly few independent competitors left.
National Australia Bank has announced it will acquire neobank 86 400 and will fold it into digital offering UBank – leaving Australia’s fledgling neobank experiment looking very feeble indeed.
In an announcement to the ASX on Friday morning, NAB announced it had entered a deal to acquire all of 86 400’s shares for up to $220 million, subject to approval by shareholders and regulators.
NAB already had an 18.3% stake in the neobank, and said it had commenced discussions about a total acquisition in late 2020.
By Ry Crozier on Jan 29, 2021 9:20AM
Will combine it with UBank.
NAB is set to acquire neobank 86 400 and combine it with its own digital-only proposition UBank.
The big four bank already holds approximately 18.3 percent of 86 400 after participating in a recent capital raising round.
It is now proposing to buy out the remaining shares for a cost of approximately $220 million, “a premium” on the recent raise.
86 400 said it has over 85,000 customers and 320,000 accounts, as well as a digital mortgage brokerage business.
The neobank’s CEO Robert Bell said in a statement that joining UBank “will significantly fast-track our growth, propelling our business, customer numbers and balance sheet to a position which would’ve otherwise taken five years.”