Reginal Thomas
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Springleaf To Buy Citigroup's OneMain for $4.25 Billion

Springleaf Holdings Inc. announced it is acquiring Citigroup Inc’s OneMain Financial Holdings Inc for $4.25 billion in cash. With this deal Springleaf becomes the U.S.’s largest subprime lender.

Citigroup has been looking to sell OneMain since 2011 as part of a place to sell unwanted assets and focus on wealthier clients. The purchase will create a lender with $15 billion in assets and nearly 2,000 branches, serving the large and growing number of non-prime customers in the United States.

Shares for Springleaft soared 38% to a record $52.44 on Tuesday. Citigroup’s shares reached $53.73.

OneMain provides loans for unexpected expenses and for small ticket items. The firm has been been profitable since 2010 when it posted a $2 billion loss. Profit has risen 7% to $415 million in the nine months ended September. OneMain has 1,140 branches in the United States compared to Citibank’s 849.