Axis’ buy of Citi’s consumer business comes with minimum negative surprise

Deal gives Axis access to super affluent clients of Citi as also the scope to cut cost and derive synergy benefits

Madhuchanda Dey
March 02, 2023 / 12:02 PM IST
Axis’ buy of Citi’s consumer business comes with minimum negative surprise

Axis expects the integration to complete in the coming 18 months and pegs Rs 1500 crore as the integration cost – a combination of Rs 1200 crore for using the transaction services from Citi and Rs 300 crore as pure integration costs

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Highlights Axis concludes the acquisition of Citibank’s India consumer business Deal pricing lower than before as are some of the key parameters High-spending Citi customers remain a key draw Scope to drive cost synergies exist post integration pangs Axis Bank on a good wicket to close the valuation gap with larger peers Axis Bank (CMP: Rs 865 Market Cap: Rs 266,144 crore) has completed the acquisition of Citibank’s consumer businesses, covering loans, credit cards, wealth management, and retail banking operations in India, effective March 1,...