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Citigroup's China Bank Deal

The financial giant is paying $3.1 billion for control of the lender.


(C) - Get Citigroup Inc. Report

continues its overseas expansion, as it emerges the victor in a battle for control of a troubled Chinese lender.

A Citigroup led group is paying $3.1 billion to acquire a nearly 86% equity stake in Guangdong Development Bank. The Citigroup consortium beat out a rival bid submitted by France's Societe Generale.

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The New York-based bank has been on an overseas acquisition spree of late, paying $3.1 billion for a stake in Turkey's third-largest lender and putting down an undisclosed sum for Central America's largest credit card issuer. Citigroup's buying binge comes in the wake of the

Federal Reserve's

decision earlier this year to lift a moratorium on big deals by the bank.

But some say the bank's overseas acquisitions are a bit misguided and Citigroup should be more focused on building up its domestic retail banking business.