Citigroup acquires loss-making Internet bank Egg from Prudential

Citigroup acquires loss-making Internet bank Egg from Prudential

UK based Prudential has announced that they are selling off their loss-making Internet bank Egg to U.S. giant Citigroup.

The deal is worth around 575 million pound and this is good news for the investors in the company.

Market analysts believe that this sale would further increase the pressure on the company’s Chief Executive Mark Tucker to improve the condition of their business operations which has been posting flat results in the recent months.

By acquiring Egg, Citigroup would further enhance their presence in the UK market. The company said that they are sure of extracting good value from this acquired assets from Prudential.

Tucker said in a statement on this acquisition: “We concluded, particularly in the light of the challenging conditions in the consumer credit market, that a sale of Egg would realize greater value than would be achievable than through retaining the business.”