Back in March of 2015, personal finance company Springleaf Holdings, Inc. announced it would be acquiring personal loans provider OneMain Financial from Citigroup for $4.25 billion. This merger, to be completed by September 30th, 2015, will drastically increase Springleaf's footprint on the personal loans market while simultaneously promoting better internal management of its now more than 1,900 branches nationwide. Not surprisingly, existing customers of both companies have questions and even concerns about what this merger will mean for them. Fortunately, we have the facts to help put these customers' minds at ease.
First and foremost, the Springleaf-OneMain merger signifies a noteworthy increase in nationwide availability of these personal finance and personal loans services. According to one projection, 88% of US citizens will now reside within 25 miles of a Springleaf branch. Springleaf is also doubling its customer base from 1.2 million to 2.5 million, and more than doubling its number of branches from 830 to nearly 2,000.
If this acquisition proves successful, Springleaf could become the nation's largest subprime lender. Consequently, the Justice Department's Antitrust Division is reviewing the merger to ensure it is in keeping with government regulations. According to The Wall Street Journal, representatives from both Springleaf and OneMain have met with the Justice Department and submitted relevant information voluntarily.
Springleaf CEO Jay Levine maintains that this merger is ultimately "pro-consumer," and an opportunity to create some consistency in a "highly fragmented and competitive" market. As both Springleaf and OneMain have been very forthcoming with their plans and intentions so far, customers can expect these businesses to continue to do so as the merger comes to fruition.
According to a statement released by Springleaf, while the resources of Springleaf and OneMain will be pooled together, the two companies will maintain their individual brands until mid-2016, meaning that current OneMain customers will still be doing business with OneMain associates before gradually being introduced to the Springleaf brand. In addition to this transition, Springleaf will also consolidate approximately 200 branches by mid-2016, in keeping with government regulations.
Originally founded as Commerical Credit in 1912, OneMain Financial is one of the leading personal loans providers in the nation, with over 1,100 branches spanning 43 states. In the 1940s, experienced major expansion, opening several stores throughout the country, and over the next 50 years, the firm's family of companies grew to include Primerica Financial and the Travelers companies. By 1998, Traverlers Group's parent company was acquired by Citicorp to create Citigroup, and subsequently CitiFinancial. From 1999 to 2004, CitiFinancial acquired two other consumer finance companies, including The Associates and Washington Mutual. Finally, in 2011, CitiFinancial changed its name to OneMain Financial to distinguish its specific personal lending services from the vast number of properties it has acquired over the past near-century.
January 28th, 2021
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