by Christopher Freeburn | February 19, 2013 2:07 pm
Citigroup (NYSE:C) has agreed to purchase a portfolio of Best Buy (NYSE:BBY) branded credit cards from Capital One Financial (NYSE:COF).
While the price of the deal was not revealed, the credit card portfolio has loan balances totaling about $7 billion. The transaction is expected to close in the third quarter of this year, the Associated Press notes.
Capital One did not indicate why it was ending its partnership with Best Buy.
Citigroup already manages more than 90 million credit cards issued by leading retailers, including Macy’s (NYSE:M), Sears (NASDAQ:SHLD) and The Home Depot (NYSE:HD).
Last month, Capital One was named InvestorPlace’s Best Stock for 2012 after posting a 38% return for the year.
Shares of Citigroup rose almost 2% on the news, while Capital One shares sank more than 1%.
Source URL: http://investorplace.com/2013/02/capital-one-to-sell-best-buy-card-biz/
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