By By John D. Mihalopoulos, Bloomberg NewsThe company, which is among the few American banks that have been struggling to attract and retain young bankers, has been testing a strategy of buying smaller U.S. lenders that are more reliant on large banks for financing.
Sunoco, a unit of Chinese state-owned conglomerate China Petroleum & Chemical Corp., is betting it can expand the reach of its credit cards and credit-card products in ways that make it easier for small banks to obtain financing.
It is also working to extend the reach and reach of some of its other products, including its car payment technology.
Sunaco, the nation’s biggest bank, has about 5,500 branches, more than half of which are in California.
It said it would buy Citigroup Inc. Citigroup is the largest U.K. bank, and the country’s largest private-sector bank by assets, with a market value of $1.1 trillion.
The strategy is aimed at building a core group of younger, highly trained, senior executives who can compete for the best jobs in banking.
Sunoco has also been exploring a $2.5 billion acquisition of Bank of America Corp. for $250 billion.
The company is also testing a strategic buyout of U.P.S., the largest private bank in the U. S. by assets.
Sunico has raised $3 billion from investors including Chinese sovereign wealth fund, the Shanghai Investment Corp., and other investors in a bid to acquire rival Citigroup, the U-P bank, for $3.3 billion.
Sunos credit card has become a hit among millennials, as the card has surged in popularity.
The card is used by more than 7 million U. Americans, according to the UPI.
It has more than 30 million customers.
SunoCiti says the credit card is a key way for millennials to access credit and is more convenient than bank cards.
“We believe this product is uniquely suited for the millennial generation, whose financial lives have evolved, as well as for the UPAB (United States Pension Benefit Administration), the government that has the financial power to help them manage their money,” the company said in a statement.
Citigroup has been struggling with a slowdown in sales of its business cards.
SunoCits credit card sales declined in 2017, while Citigroup’s rose 7 percent.