Barclays cracks Egg deal
Banking giant Barclays has completed its acquisition of Derby-based creditor Egg's credit card assets. Barclays will purchase Egg's 1.15 million UK credit card accounts, with approximately £2.3bn of gross receivables.
Barclays has bought the division from US-based lender Citigroup.
The sum of the acquisition, which was revealed in March this year, was not disclosed.
Barclays said it intends to integrate the accounts into its credit card division, Barclaycard.
The banking giant said the acquisition had “reinforced” its strategic ambition to grow in its chosen markets and businesses.
Chris Lucas, group finance director of Barclays, 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."
Valerie Soranno Keating, chief executive of Barclaycard, said: "Barclaycard has a long history of providing simple and innovative payment solutions for our customers since launching the first UK credit card 45 years ago.
"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."
Citigroup acquired Egg from insurance group Prudential in 2007 for £575m. The American bank had been looking to sell Egg for several months.
