NEW YORK (
agreed to sell its Canadian MasterCard business to the
Canadian Imperial Bank of Commerce
Financial terms of the deal weren't disclosed in a press release late Monday.
The sale is expected to reduce the assets in the so-called 'bad bank' Citi Holdings' portfolio by approximately $1.93 billion, the company said. Citigroup doesn't expect the deal to have a material impact on net income or capital ratios. The transaction is expected to close by Oct. 31, subject to regulatory approval.
"This transaction demonstrates the continued progress we are making in our efforts to divest non-core assets," CEO Vikram Pandit said in a statement. "Our team continues to pursue opportunities to reduce assets in Citi Holdings in a way that will create value for our stakeholders."
The sale of the business is consistent with Citi's strategy to reduce the assets and businesses within Citi Holdings in an "economically rational manner while working to generate long-term profitability and growth from Citicorp, which comprises its core franchise," the bank said.
Citigroup shares rose 0.5% to $3.90 in recent afterhours trading.
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-- Written by Laurie Kulikowski in New York.