Citigroup sells Diners Club operations to BMO
Citigroup said Tuesday it reached an agreement to sell its Diners Club North America card business to BMO Financial Group (BMO).
The deal gives BMO exclusive rights to issue Diners cards in the US and Canada.
Details of the deal were not disclosed, but Citi said it would reduce its assets by around one billion dollars, with no major impact on Citi's net income or capital ratios.
The transaction is expected to close by March 31, subject to regulatory approvals.
The sale is part of a strategy by Citi, which has received some 45 billion dollars in capital from the US Treasury to shore up its finances during the financial crisis, to slim down and concentrate on core banking operations.
In 2008, Citi sold the international Diners Club operations to Discover Financial Services for 165 million dollars.
Diners Club launched the first general purpose credit card in 1950 and continues to market itself as an upscale card brand.
AFP
