The Bank of Australia has agreed to take on the bulk of the shares of the world’s largest bank as it prepares to be merged with one of the biggest Australian companies.
Key points:The bank has agreed a $4 billion takeover by Australian-based lender CitigroupThe deal will allow the Australian Federal Government to gain control of $4bn worth of Citigroup sharesThe deal was agreed in principle in MarchThe bank said it was reviewing its options and expected to close the deal by the end of MarchThe deal has been backed by a coalition of unions, businesses and other groups including the Australian Securities and Investments Commission.
The Bank of Canada announced the acquisition of Citibank’s $4-billion stake in February.
The deal is being done through a private placement in Australia by the Commonwealth Bank of Victoria.
The bank had been expected to take the deal public by the second quarter of next year, with the bank’s shares worth about $7 billion.
But that option has been put on hold as the government and some other investors have expressed concern that the bank will be unable to compete in a world where the dollar has fallen and its stock is under pressure.
Topics:bankers,industry,business-economics-and-finance,business,corporate-governance,finance-and and-trade,industries,companies,australiaFirst posted March 06, 2019 07:47:24Contact Anna Dickson