Citibank sells foreign credit card business
Citigroup, one of the largest credit card companies in the U.S., reached a deal with U.K.-based Barclays PLC this week, agreeing to sell its Egg credit card business to the company.
While the terms 
of the transaction have yet to be finalized, Citi is reportedly netting nearly $3 billion from the sale in exchange for nearly 1.2 million customer credit card accounts.
The move is the latest in a series of sales by the U.S. bank, as it attempts to retract from the European borrowing market. Last year, Citi sold off a more than 500,000 account credit card portfolio to another U.K. card issuer, SAV Credit.
In addition, earlier sales of credit card accounts were made to companies in Portugal, Norway, Italy and Finland. U.S.-based Blackstone Group was also a front-runner for purchasing the Egg portfolio, and had considered buying it to form a larger credit card company.
A Citigroup spokeswoman told the Wall Street Journal that the bank still holds Egg-branded products such as loans, mortgages and insurance. However, she mentioned there could be a possibility they will be sold off later on, as the company continues to consolidate its priorities in the U.S. market.
5-7-2012
by Chris Martin
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by Dan Seitz
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by Neil Hayashi
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