Skip to main content

The Globe and Mail

Capital One to sell $7-billion Best Buy card portfolio to Citigroup


Capital One Financial Corp. said it agreed to sell to Citigroup Inc. its $7-billion (U.S.) portfolio of private label and co-branded credit card accounts linked to electronics retailer Best Buy Co. Inc.

Capital One, which is among the largest credit card issuers in the United States, said there would be no significant gain or loss on the transaction. It did not disclose the selling price.

Private label cards are commonly called store cards and can be used only at a single retailer. Co-branded cards can typically be used elsewhere.

Story continues below advertisement

Separately, Citigroup said it would issue and manage Best Buy credit cards in the United States in a deal that would not affect its earnings this year materially.

The transactions are expected to close in the third quarter, Citigroup said.

Citigroup's cards division for stores has come a full circle since the financial crisis. The bank had initially planned to sell the unit but decided to keep it after loss rates on the cards fell.

Citi's retailer cards business now services 90 million accounts for chains such as The Home Depot Inc., Macy's Inc. and Sears Holdings Corp.

Report an error
As of December 20, 2017, we have temporarily removed commenting from our articles. We hope to have this resolved by the end of January 2018. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to If you want to write a letter to the editor, please forward to