UPDATE: Capital One to Sell Best Buy Card Portfolio to Citi
Capital One Financial Corporation (NYSE: COF) today announced that it has reached an agreement to sell the portfolio of Best Buy private label and co-branded credit card accounts, with current loan balances of approximately $7 billion, to Citi. In addition, Capital One and Best Buy have agreed to end their contractual credit card relationship early.
The sale of the loans to Citi, which is subject to customary closing conditions, and early termination of the Best Buy partnership are expected to be finalized in the third quarter of 2013. Upon closing, Capital One expects that the proceeds from the sale will approximate the book value of the accounts, resulting in no significant gain or loss on the transaction.
"We have a proven, scale partnerships infrastructure and a great portfolio of partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships. "Our partnerships business continues to deliver strong contributions to our results and serves as a platform for future growth potential."
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