Citigroup sells Egg credit card division to Barclays

2 March 2011

Barclays is to acquire the UK-based credit card firm Egg from Citigroup.

The transaction will involve the exchange of 1.15 million credit card accounts worth £2.3 billion although the value of the deal has yet to be disclosed.

Barclays is expected to include the newly-acquired accounts as part Barclaycard, its credit card unit and is part of the bank’s global retail division’s strategy to expand in specific business areas, the firm explained.

The deal is subject to regulatory approval although it is expected to be cleared during the second half of 2010.

Chris Lucas, group finance director of Barclays PLC, said: “The acquisition of Egg’s UK credit card accounts has been priced at a significant discount to gross receivables.

“Based on current projections, we expect the transaction to exceed the financial return targets set out at our recent results announcement.”

“We are very pleased to welcome over a million Egg customers and to provide them with access to our mainstream capabilities in areas such as mobile and contactless payments, digital servicing and instant rewards,” Valerie Soranno Keating, chief executive of Barclaycard, added.

Meanwhile, data published by Barclays showed that it received 294,891 complaints during the second half of 2010, four per cent less than the previous six-month period.

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