Citi Announces U.S. Credit Card Agreement with Best Buy
Citi to acquire $7 billion of credit card receivables from Capital One
Agreements expand Citi Retail Services’ position as a market leader
New York – Citigroup today announced that it will enter into a strategic agreement with Best Buy to issue and manage Best Buy-branded cards in the United States. In addition, Citi also reached an agreement with Capital One Financial Corp. to acquire approximately $7 billion of Best Buy private label and co-branded card loans. Both deals are anticipated to close in the third quarter of 2013 subject to customary conditions. Citi does not currently expect the impact of the transactions to be material to its earnings in 2013.
“This will add another premier retail franchise and high-quality card portfolio to Citi Retail Services and significantly expand our already strong position as a market leader in North America,” said Bill Johnson, CEO of Citi Retail Services. “Best Buy is the leader in consumer electronics and we are excited to partner with them. We look forward to leveraging Citi’s capabilities and expertise to grow and enhance Best Buy’s relationships with their loyal and valued customers.”
Citi Retail Services provides consumer and commercial credit card products, services, and retail solutions to national and regional retailers across North America. The business services nearly 90 million accounts for a number of iconic brands, including The Home Depot, Macy’s, Sears, Shell, and ExxonMobil.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Certain statements in this release, including the entry of the strategic agreement with Best Buy, the closing of the Best Buy and Capital One Financial transactions and the impact of the transactions on Citi’s 2013 earnings, are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results and other financial conditions may differ materially from those included in these statements due to a variety of factors, including but not limited to the precautionary statements included in this document, such as completion of the transactions, including satisfaction of applicable closing conditions for the transactions. More information about these factors and other factors that may affect Citi’s future results is contained in Citi’s filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citi’s 2011 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this document.
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