New York – Citigroup announced Monday that it was buying the world’s largest stand-alone online bank, London-based Egg Banking PLC, to expand its financial operations in Britain and its Internet expertise worldwide.
Citigroup, with headquarters in New York, said it would pay British insurer Prudential PLC $1.13 billion in cash for the bank. The deal, subject to regulatory approval, is expected to close by April.
The combination of Egg and Citigroup’s British consumer-banking and finance operations creates a financial-services provider with over 4 million customers and more than quadruple Citigroup’s 800,000 British credit-card base.
The move is in line with recent trends at Citigroup, the largest U.S. bank by assets. Chief executive Charles Prince has eschewed blockbuster deals and focused on targeted and strategic acquisitions, such as Egg Banking.
Citigroup also has moved in recent years to expand its online banking presence.
