Friday May 2, 01:19 PM
ING buys Citigroup pensions unit for 900 mln dlrs
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AMSTERDAM (AFP) - Dutch banking and insurance group ING said Friday it woudl buy pension planner CitiStreet from US banking giant Citigroup (NYSE: C - news) and State Street Corp (NYSE: STT - news) for 578 million euros (900 million dollars).
ING said the deal, financed from its own resources, would provide significant operational synergies and make it one of the biggest US pension players.
"Obviously there are always synergies to be gained when you make an acquisition of this magnitude. Our objective is to focus on a seamless integration of the operations," an ING spokeswoman said.
CitiStreet, with 3,700 employees, is equally owned by Citigroup and State Street Corp.
Citigroup, badly hit by losses on its exposure to the US subprime or higher-risk home loan criss, has been seeking to strengthen its balance sheet.
The bank (NASDAQ: TBHS - news) reported a 5.1 billion dollars first quarter net loss last month and said it would cut an additional 9,000 jobs to cope with the subprime problems.
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