Barclays to Acquire Egg's UK Credit Cards Business from Citi

Global banking group Barclays Bank PLC said Tuesday it had struck a deal to acquire Egg's UK credit cards assets from Citigroup for an undisclosed consideration.

Barclays, which has expanded its banking operations during the global credit crunch, said that it would purchase all of Egg's UK credit cards accounts under the terms of the deal.

Egg's UK credit card assets consist of 1.15 million credit card accounts with £2.3 billion of gross receivables.

Barclays said the deal reinforces the strategy of its global retail banking operations drive to secure a "greater depth" in selected markets and businesses.

The UK-headquartered bank hopes to close the deal during the first half of 2011 subject to certain regulatory approvals.

The deal also comes as a number of major banks have reported improved earnings in recent weeks, supporting some economists' projections that the world economy is gradually getting back to its feet following the worldwide financial crisis.

Barclays said Egg's credit card customers would benefit from access to the bank's mobile and contactless payments systems, as well as digital servicing.

Author: Justin Cole, analyst.