Citigroup will be able to free about GBP40 million after it has agreed to sell its retirement scheme of Powell Duffryn to pensions insurer Paternoster for GBP400 million, The Financial Times has reported.
Along with the scheme’s asset portfolio, Citi will pay a premium to Paternoster. It will retain some of the liabilities, which may be transferred to Paternoster on a future date. The scheme has 7,000 members.
Citi has acquired Powell Duffryn’s parent company, Nikko Principal Investments, in January 2008.