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Troubled banking giant Citigroup on Friday said it has completed the sale of its German retail banking business to European banking group Credit Mutuel-CIC for euro 5.2 billion ($ 6.6 billion) in an all cash deal.
Citigroup said that it has sold its German banking business and some of its affiliates to France-based CMC for $6.6 billion, which includes an estimate of 2008 earnings, it said in a statement.
The acquired entity would operate under the Citibank brand until it undergoes re-branding in 2010, it added.
"The transaction is another strategic step that significantly strengthens Citi's key capital ratios and allows us to reallocate capital to the best growth opportunities for the overall franchise.
"We are especially pleased that the franchise and employees remain in good hands to serve our retail banking customers in the future," Citigroup chief executive officer Vikram Pandit said.
The German retail business of Citi has assets of $15.6 billion and deposits of $11.8 billion. While it has over 3.25 million customers, the retail business has over 6,800 employees in 340 locations.