British mortgage lender Yorkshire Building Society is to buy the mortgage and savings business of Egg Banking from American bank Citigroup, as Citi continues to sell non-core assets after its bail-out during the credit crisis.
Yorkshire said the Egg businesses it was acquiring comprised a £2.5 billion sterling savings book and a £430m mortgage book. It added it would also acquire the Egg brand.
The sale of the Egg divisions to Yorkshire Building Society comes just a few months after Citi had sold off Egg's credit card assets to British bank Barclays.
Yorkshire Building Society, which has more than £30 billion worth of assets, said buying the Egg businesses would widen its products and range of services, and improve the company's funding position. Yorkshire did not disclose how much it paid for the businesses.
Yorkshire Building Society is also looking at Northern Rock, the fully nationalised British bank which the UK government aims to sell off in due course.
Citi acquired Egg from British insurer Prudential in 2007 for £575m and the American bank had been looking to sell Egg for some time.
