An affiliate of the Spanish Banco Santander said Thursday that it will buy $3.2 billion of Citi's auto loan portfolio.
Santander Consumer USA will also service roughly $7.2 billion of loans that will be retained by CitiFinancial Auto as part of the deal.
The bank will buy the portfolio for a price equal to 99 percent of the value of the gross receivables. Other terms of the sale were not released.
Santander said the deal was part of its commitment to originating and servicing direct auto loans. Citi said the move was part of its plan to reduce assets in areas not directly tied to its core Citicorp banking businesses. The sale is not expected to have an impact on Citi's net income.
The deal is expected to close at the end of the third quarter and is subject to regulatory approval.
Citi shares fell 9 cents, or 2.2 percent, to $3.81 at midday.
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