Citigroup to buy ABN Amro's units

Citigroup to buy ABN Amro's units

NEW YORK : Citigroup Inc., the world's biggest bank, agreed to buy ABN Amro Holding NV's transaction-services businesses in European and Asian countries such as the Netherlands, India and South Korea.

Terms weren't disclosed. The units provide direct custody, securities clearing and fund services to 550 financial institutions in the Netherlands, Russia, Greece, India, Indonesia, South Korea, Poland and Taiwan, Citigroup said in a statement. The purchase may add US$240 billion in assets under custody to Citigroup's $7.3 trillion.

Citigroup's transaction-services business, which transfers money for banks, investment firms and individuals, earned $285 million in the third quarter, a 45 percent rise from the year earlier. Assets under custody have climbed 28 percent in the past year. -- Bloomberg