The transaction is not material to the bank’s earnings and is anticipated to close in the second half of this year
Citigroup first acquired its stake in CGB via a consortium investment in 2006 that included China Life Insurance.
China Life will more than double its stake in CGB from 20% after the acquisition. State Grid Corp of China and CITIC Trust are the other shareholders in CGB, with each holding a 20% interest.
Citi has operated in China for more than 100 years and employs over 8,000 people in the country.
The bank operates across 13 cities in China. In 2012, Citi launched a sole-branded credit card in the country.
Citi Asia Pacific CEO Francisco Aristeguieta said: "While we are proud of our decade-long partnership with China Guangfa Bank, this transaction is consistent with the simplification of Citi and allows us to focus our resources in China on growing our core franchise further."
It was revealed last month that Citi is planning to sell its consumer banking operations in Brazil, Argentina and Colombia as part of its efforts to reduce costs and increase profitability.
The businesses include retail banking and credit card operations, which will be transferred from Citicorp into Citi Holdings.
Image: Citibank branch in Chinatown district of Lower Manhattan. Photo: courtesy of Uris at English Wikipedia.
