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.