Citi has signed a definitive agreement to sell its Diners Club North America card business to BMO Financial Group (BMO). The deal gives BMO exclusive rights to issue Diners cards in the US and Canada.
The sale is anticipated to reduce Citi’s assets in Citi Holdings by approximately $1 billion and is not expected to have a material impact on Citi’s net income or capital ratios.
The sale of this business is consistent with Citi’s strategy to optimize the assets and businesses within Citi Holdings while working to generate long-term profitability and growth from Citicorp, which comprises its core franchise.
However, the transaction is expected to close by March 31, 2010 subject to regulatory approvals and customary closing conditions.
