Citigroup has announced it is to buy the credit-card business of Sears, Roebuck and Co. for US$3 billion.
Citigroup, the nation's largest financial institution, valued Sears' portfolio at about $30 billion, including its in-house and MasterCard-branded cards. The price it will pay represents a 10 percent premium over those receivables.
Citigroup said the purchase also includes Sears' Financial Products business and credit-card facilities, with approximately 8,300 employees.
Sears said in March it was looking to sell the credit-card division to focus on its retail operations.
Citigroup said that the purchase will make the bank the largest private-label card provider in the nation.
Sears' credit-card business includes 59 million total accounts, of which 25 million are active.
