Insurer Prudential has sold its internet banking arm Egg to Citigroup for £575 million.
The US financial services giant's acquisition comes about despite Egg recording pre-tax losses of £145 million in the year ending December 31st 2006.
But Prudential chief executive Mark Tucker said that Citigroup saw "enormous opportunities to develop Egg's business in the UK".
And Ajay Banga, chairman and chief executive officer of Citigroup's international consumer group, claimed: "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," he added.
Under the terms of the deal, which is expected to be completed by the end of April this year, Prudential will continue to provide life and pensions products to Egg's three-million strong customer base until 2012.
Prudential itself today revealed that sales were up 16 per cent to £2.47 billion over the last 12 months.
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