Citigroup is to buy ABN Amro Mortgage Group, a unit of LaSalle Bank Corp and ABN Amro Bank.
Citigroup said it will buy about $9 billion in net assets and ABN Amro's approximately $224 billion mortgage-servicing portfolio, although terms of the transaction were not disclosed.
ABN said it expected to record a small book gain on the transaction, which is expected to close in the first quarter of 2007.
The Dutch bank added that its decision to sell the business was part of its strategy to streamline its activities and to align them around mid-market commercial and consumer clients.
The acquisition will add about 1.5 million servicing customers to Citimortgage's portfolio, Citigroup said. It also will add 2,500 wholesale brokers to its wholesale lending business.
