Citigroup Inc. has entered an agreement to buy the Best Buy private-label card portfolio, which has about $7 billion in loans, from Capital One Financial Corp. Citi has also agreed to issue and manage new Best Buy-branded cards in the U.S.

The sale of the accounts "will approximate the book value of the accounts," Capital One said in a press release Feb. 19. As such, the McLean, Va., issuer expects "no significant gain or loss on the transaction," it says. The sale provides an early end to the contractual agreement between Capital One and Best Buy.

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