Citi Brazil said Tuesday that it has reached a definitive agreement with Banco Itaú Unibanco to sell Credicard, its non-banking credit card and consumer finance business.
The deal includes 96 Credicard stores and about US$3.260 billion in consumer loan balances as of December 31, 2012. Included in the deal are the portfolios of Credicard-branded credit cards, as well as a personal loan portfolio. The deal does not include Corporate cards, the Citi and Diners branded portfolios, and the Credicard Platinum portfolio, except for Exclusive, or Credicard American Airlines cards, which will be migrated to the Citi brand and will continue to be managed by Citi.
Citibank's retail branch network will not be affected by the deal.
The deal, once approved by Brazilian regulators, is expected to generate a gain on the sale of about US$300 million after-tax, or $0.10 per share, at closing, Citi said.
The business activities will be reflected in discontinued operations beginning in the second quarter of 2013.
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