Citigroup Forms Strategic Alliance with Nikko Beans for E-Commerce Financial Services

Citigroup announced a significant agreement on November 1, 1999, to acquire 19% of Nikko Beans, Inc., forming a strategic alliance with the Tokyo-based firm to offer financial services to consumers via E-commerce. The partnership between Nikko Beans and Citibank aims to provide improved products and services to customers of both companies. This move aligns with Citigroup's strategy to offer comprehensive financial products and services through multiple channels, including the Internet.

Key Takeaways:

• Citigroup agreed to acquire 19% of Nikko Beans, Inc. as part of a strategic alliance with the Tokyo-based firm.
• The alliance will enable both companies to offer improved products and services to customers of each company.
• Nikko Beans offers brokerage, investment-trust, and insurance products, as well as research to its customers via the Internet and telephone.
• Citibank, a subsidiary of Citigroup, offers banking and investment products in Japan through the Internet, telephone, and its branch network.
• The Nikko Securities Co., Ltd. will retain its position as the largest shareholder of Nikko Beans, followed by Nippon Life Insurance Company and Mitsui Trust & Banking.
• As a result of the partnership, Citigroup will become the second-largest shareholder of Nikko Beans.
• The purchase price of the 19% stake in Nikko Beans was not disclosed.
• Robert Berardy, a Vice President of Citibank in Japan, stated that the investment fits into Citigroup's strategy to offer comprehensive financial products and services through multiple channels.
• Citigroup is the most global financial services company, providing financial products and services to over 100 million consumers, corporations, governments, and institutions in 100 countries.

Statistics:

• Citigroup's strategic alliance with Nikko Beans is aimed at providing comprehensive financial products and services through various channels.
• Nikko Beans has been operational since October 1st, offering a range of financial products and services to its customers.
• The partnership between Citigroup and Nikko Beans will enable both companies to reach a broader customer base through the Internet, telephone, and other channels.
• Citigroup has a significant global presence, with operations in 100 countries and over 100 million customers worldwide.
• As of 1999, Citigroup was the most global financial services company in the world.

Sources:

• Business Wire, "Citigroup reaches agreement to acquire 19% of Nikko Beans, Inc.", November 1, 1999.
• Citigroup's website, www.citigroup.com, was accessible to verify additional information about the company's operations and strategic partnerships.