British lender YBS buys Egg assets from Citigroup

25th July 2011, Comments 0 comments

Britain's Yorkshire Building Society announced on Monday that it had agreed to buy the mortgage and savings activities of Internet bank Egg from US financial services giant Citigroup for an undisclosed amount.

YBS said in a statement that it would also acquire the Egg brand as part of the deal, but will not take on the company's 600 workers who are based in Derby. The deal is expected to complete later this year.

Monday's news comes four months after Citigroup sold the Egg credit card business to British bank Barclays, also for an indisclosed sum.

Egg's mortgage and savings business comprises a £2.5-billion savings book and a £430-million mortgage book, according to the statement.

"We are looking forward to welcoming Egg's mortgage and savings customers to the Yorkshire," said YBS Chief Executive Iain Cornish.

At the height of the dotcom boom, Pioneering Internet bank Egg was launched with great fanfare in 1998 by British insurer Prudential. It floated Egg on the stock market in 2000 but decided to take the division private in January 2006.

One year later, in 2007, the insurance giant sold Egg to Citigroup for £575 million.

© 2011 AFP

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