BMO Financial Group (BMO) To Gain $7.8 billion In Card Business By Single Acquisition

BMO Financial Group (NYSE: BMO) will buy out the Diners Club North American franchise from Citigroup Inc (NYSE: C). The move alleviates Citigroup of all Diners Club operations, as it sold of the company's international business to Discover Financial Services (NYSE: DFS) last year.

Citigroup (C) stock is likely to gain by virtue of this deal. The deal is likely to add $7.8 billion in card transactions for BMO Financial Group (BMO) and gives it net receivables of nearly $1 billion, making it more competitive in the North American commercial card market.