Citigroup will sell the UK card assets business to Barclays Bank for an undisclosed sum. Presently Egg has 1.15 million cardholders with an outstanding credit of £2.3 billion.
After the acquisition, Egg cards will cease to exist and will be merged with Barclays card unit Barclaycard.
The deal is expected to be complete in the first half of 2011, subject to clearance from the competition council.
“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”, said Barclays group finance director Chris Lucas.