American Express is selling its Costco portfolio to Citi.
The sale is expected to close in June with all Costco customers with cobranded American Express cards being transferred to Citi.
In February 2015, Amex announced the end of its exclusive cobranding agreement with the retailer. At the time the company said it didn’t make economic sense to continue with the partnership.
The sale of its portfolio could earn American Express up to $1 billion, according to a statement released by the company.
Along with its loss of CostCo’s business, the company also lost an agreement with JetBlue and faced an antitrust lawsuit from the Department of Justice.
During a CNBC interview on Monday, Warren Buffett, the company’s largest shareholder, said the loss of Costco was a “big deal.”
Buffett believes AmEx is still a very strong brand with a great reputation. He admits that the company is facing a lot of competition.
Shares at American Express were down less than 1% at 10:36 AM EST.