Citigroup completes purchase of Sears card unit Mon November 3, 2003 03:10 PM ET NEW YORK, Nov 3 (Reuters) - Citigroup Inc. (C.N: Quote, Profile, Research) , the world's largest financial services company, completed its purchase of Sears, Roebuck & Co.'s (S.N: Quote, Profile, Research) credit card portfolio, the companies said on Monday. Citigroup, the largest U.S. credit card issuer, paid a 10 percent premium, or about $2.9 billion, on Sears' $28.6 billion of private label and bankcard credit card receivables, plus $300 million for other assets, offices and employees. Citigroup also assumed $10.4 billion of securitized debt and other liabilities. The companies signed a multi-year marketing and servicing contract expected to provide revenue and cost savings over the life of the alliance. Citigroup is based in New York, and Sears in Hoffman Estates, Illinois. The purchase adds 64 million Sears accounts to Citigroup's credit card portfolio. It was announced July 15 as part of an overhaul designed to return Sears, the largest U.S. department store chain, to its retail roots. The card division generated $366 million of operating profit in the third quarter. Citigroup said there will be no immediate changes to Sears' card programs and operations, and that cardholders may continue to use their cards normally. Citigroup said it now now has 161 million card accounts and $146 billion of card receivables in North America, and 176 million accounts and $160 billion of receivables worldwide. Citigroup shares traded Monday afternoon at $48.24, up 84 cents. Sears shares traded at $53.50, up 87 cents. © Reuters 2003. All Rights Reserved.
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