Citigroup said Tuesday it has agreed to sell its Brazilian unit, the non-bank credit card and consumer finance business, Credicard itau Bank Banco Unibanco.
The financial details of the transaction were not disclosed, but Citigroup is expected by the Brazilian regulatory approval, the transaction will generate after-tax gain of about $ 300 million, or 10 cents per share, closing.
The transaction includes 96 Credicard shops and consumer loan balance of about $ 3.26 billion, as of December 31.
The agreement also includes a combination of the Credicard joint card and personal loan portfolios.
Excluded from the transaction on the card: business card, Citibank and Diners Club brand portfolio, a Credicard American Airlines card, will be migrated to the United States brand, most of the the Credicard platinum combination.
The company said Citibank's retail branch network will not be affected by this transaction.
Citigroup shares ended regular trading up $ 1.17, or 2.4%, at $ 50.09. Stock is up 27% this year.
 
 



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