Citigroup to buy Diners Club

Citigroup to buy Diners Club

TOKYO (DPA): Japan's Fuji Bank and Japan Travel Bureau Incorporation (JTB) said Tuesday they have agreed to sell their share-holdings in Japanese credit card company Diners Club of Japan Incorporation to Citigroup Incorporation of the United States.

Fuji Bank and its affiliates currently own 60 per cent of Diners Club of Japan. The remaining 40 per cent is owned by JTB.

Citigroup is expected to buy back all of the shares in Diners Club of Japan it sold to the credit card company's current major shareholders.

The re-purchase is aimed at beefing up Citigroup's financial services for individual customers by expanding into the credit card business in Japan, analysts said.

Diners Club of Japan issues Diners Club cards in Japan and provides related credit card services to card holders in and outside Japan on behalf of Diners Club International Ltd. of the U.S.