Citigroup Inc. today announced it has reached an agreement to acquire 100% ownership of Egg Banking plc from Prudential plc, for £575 million, or approximately US$1.13 billion in cash.

Egg is the world’s largest pure online bank and one of the UK’s leading online financial services providers, from

The transaction is expected to be accretive to Citigroup’s earnings in its first year.

The purchase includes over three million Egg customers, and products and services including online payment and account aggregation services, credit cards, personal loans, savings accounts, mortgages, insurance, and investments. Citigroup intends to continue using of the Egg brand.

Combining Egg and Citigroup’s UK Consumer operations will create a broad-spectrum consumer financial services provider with over four million customers, more than quadrupling Citigroup’s 800,000 UK credit card base by adding Egg’s approximately 2.9 million credit card customers.

Ajay Banga, Chairman and CEO of Citigroup Global Consumer Group – International, said: “Egg is an excellent strategic fit with our business and we are excited to have the opportunity through this acquisition to broaden our international Consumer banking business, and make our products and services available to more people around the world. We also will be able to learn from Egg’s successful direct banking platform to enhance our global offerings.”

Citigroup’s UK Consumer business today serves over one million customers primarily in the wealth management and near prime lending markets, and offers current, savings, and foreign currency accounts, credit cards, investments, offshore banking, personal loans, and mortgages. It has five retail bank branches, 100 consumer finance branches and offers 24/7 online and telephone banking.

The deal is expected to close in the next 60-90 days and is subject to regulatory approvals.