On Tuesday, Capital One Financial (NYSE:COF) announced that it has agreed to sell to Citigroup (NYSE:C) the private label and co-branded credit card accounts it runs for Best Buy (NYSE:BBY). The credit card portfolio contains current loan balances of approximately $7 billion. Simultaneously, Capital One says it has agreed with Best Buy to end their "contractual credit card relationship" ahead of schedule.
Closing of the portfolio sale to Citi is scheduled to take place in Q3 2013. Financial terms of the sale were not disclosed, but in a statement, Capital One opined that since it is selling the portfolio for the approximate book value of the accounts, Capital One at least will record no "significant" gain or loss on the sale.