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Egg to be purchased by CitigroupThe UK's online banking giant Egg, owned by Prudential, is to be purchased by Citigroup, which has made a recent announcement confirming that the purchase of Egg Banking is set to go ahead for a reported price of five hundred and seventy five millions pounds.
Ajay Banga, chairman of Citigroup Global Consumer Group – International stated: "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. " Prudential Chief Executive Mark Tucker added: "The sale of Egg to Citigroup realizes greater value for our shareholders than retaining the business within the group. Citigroup is the largest credit card issuer in the world and sees enormous opportunities to develop Egg's business in the U.K. " Egg has a wide range of customers at present, and included in the range of financial services, products, and customers that Citigroup will take on with its Egg acquisition are loans, mortgages, savings, credit cards, insurance, and investments customers. Prudential's earning per share are expected to rise as a result of Citigroup purchasing Egg, and this means that prudential can use the proceeds to reduce its net debt. Citigroup officials also made a statement predicting that the purchase of Egg would most likely boost earnings in the first year. It is thought that the transaction will be completed by the end of April this year. Regulatory approvals are required prior to the deal with sealed and completed.Tom Smith
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The purchase of Egg, which is currently part of Prudential PLC, will boost earnings and customer base for Citigroup, with the combination of the two financial groups forming a financial group with around four million customers. Cititgroup currently has a customer base of eight hundred thousand credit card customers.