BANKING giant Barclays has struck a deal to buy more than a million credit card accounts belonging to internet bank Egg.
The proposed switch to Barclaycard, which is yet to get regulatory approval, follows an agreement with Citi, the US owner of Derby-based Egg.
The credit card portfolio is the largest part of Egg, which opened for business in 1998 as one of the UK’s first internet-only banks. Other Egg products covering savings, insurance, loans and mortgage will remain with Citi, while the US bank has retained the Egg brand.
Citi bought Egg from Prudential for £575m in early 2007. However, Egg has been hit by the downturn and heavy online competition, while Citi is seeking to improve its balance sheet.