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Citigroup cracks onto Egg for UK growth

Citigroup cracks onto Egg for UK growth

(1 February 2007 – UK) UK insurer Prudential is selling loss making UK internet bank Egg to Citigroup for around ₤575 million (US$1.127 billion). Just last month Prudential turned down an initial approach for Egg from Citigroup.

Citigroup said it would retain the Egg brand and combine the bank with its UK consumer operations. The acquisition of Egg boosts Citigroup’s credit cards base in the UK fourfold.

Egg has some three million customers and offers payment and account aggregation services, credit cards, personal loans, savings accounts, mortgages, insurance and investments.

Citigroup global consumer group CEO George Awad said the US bank liked the Egg brand, platform, customer base and customer engagement model.

'This is a terrific acquisition for Citigroup, because it provides us meaningful scale in consumer financial services in the UK, a key strategic market,' he said.

Prudential originally put on Egg on the market three years ago and has reportedly courted interest from Citibank, Royal Bank of Scotland, HSBC and US credit card company Capital One since then.

Egg was de-listed from the UK stock market in February 2006 when it had a value of £1.1 billion.
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