Citigroup Buys Online Egg Bank
Citigroup announced today that it has reached an agreement to purchase UK based Egg Banking (Egg) the largest online bank in the world. Citigroup is buying the company from Prudential PLC for $1.13 billion in cash for the bank. The deal is on track to be completed by the end of April.
The purchase includes more than three million Egg customers, and all the products and services the company offers its customers. The deal will expand Citigroups base in the UK by adding Egg's 2.9 million customers. Citigroup currently has around 800,000 customers in the UK.
Ajay Banga, Chairman and CEO of Citigroup Global Consumer Group - International, said: "Egg is an excellent strategic fit with our business and we are excited to have the opportunity through this acquisition to broaden our international Consumer banking business, and make our products and services available to more people around the world. We also will be able to learn from Egg's successful direct banking platform to enhance our global offerings."
The purchase is inline with Citigroup's strategic growth plans for the UK. In December 2006, they purchased Quilter, a UK wealth advisory firm. This latest acquisition will put the company in a good position to have a larger role in the UK personal financial services market.
George Awad, CEO, Citigroup Global Consumer Group, Europe, Middle East and Africa, said, "This is a terrific acquisition for Citigroup, because it provides us meaningful scale in consumer financial services in the UK, a key strategic market, and enables us to enhance the value proposition for customers. We will deliver growth by combining Egg's leading edge online products and distribution with Citigroup's global banking expertise and scale. We look forward to working with the team at Egg."
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