American Express is officially selling its massive Costco business to Citi

What's Ahead in the Week: Can Costco Impress Investors With Earnings?

American Express is selling its exclusive Costco portfolio to Citi.

Last February, American Express announced the end of the exclusive co-branding agreement on grounds that it couldn't find a deal that made better economic sense. The end of the deal was slated for this March.

In a statement Monday, American Express confirmed that it has sold the portfolio to Citi. The sale is expected to close in June, and all Costco customers with co-branded American Express cards will be transferred to Citi.

American Express could earn up to $1 billion from the sale, according to the statement.

See more of Costco stores:

19 PHOTOS
Costco stores
See Gallery
American Express is officially selling its massive Costco business to Citi
Customers walk toward a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Linda Wentzel shops for clothing at a Costco Wholesale Corp. store in East Peoria, Illinois, U.S., on Tuesday, May 26, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release third-quarter earnings figures on May 27. Photographer: Daniel Acker/Bloomberg via Getty Images
Customers wait in line to check out after shopping inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Girls sit in a shopping cart as a customer pushes them past Halloween decorations displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A customer browses a rack of clothes inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Signage is displayed outside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A butcher works in the meat department inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Cuts of meat are displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A customer views an item in the frozen foods aisle at a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Customers stand at check out counters after shopping inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
A Costco Wholesale warehouse location in Woodbridge, Virginia, January 5, 2016. AFP PHOTO / SAUL LOEB / AFP / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Customers walk down an aisle inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Kellogg Co. brand cereal bars are displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Pineapples and other produce are displayed for sale inside a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
An employee pulls a cart full of tires past the cafe at a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
Employee Jordan Meinders sorts a display of books at a Costco Wholesale Corp. store in East Peoria, Illinois, U.S., on Tuesday, May 26, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release third-quarter earnings figures on May 27. Photographer: Daniel Acker/Bloomberg via Getty Images
Contract employees push sample carts through a Costco Wholesale Corp. store in Nashville, Tennessee, U.S., on Friday, Sept. 25, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release fourth-quarter earnings figures on September 29. Photographer: Luke Sharrett/Bloomberg via Getty Images
An employee pushes a row of shopping carts into a Costco Wholesale Corp. store in East Peoria, Illinois, U.S., on Tuesday, May 26, 2015. Costco Wholesale Corp., the largest U.S. warehouse-club chain, is expected to release third-quarter earnings figures on May 27. Photographer: Daniel Acker/Bloomberg via Getty Images
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

The loss of the exclusive deal with Costco was seen as a huge blow to American Express, which also recently lost an agreement with JetBlue, and faced an antitrust lawsuit from the Department of Justice.

And in a CNBC interview Monday, Warren Buffett, the company's largest shareholder, said the loss of Costco was a "big deal".

He spoke about American Express after a viewer question that wondered why Berkshire Hathaway is still invested in the company even after all its recent issues.

Buffett noted that it's a very strong brand with a great reputation that will continue to face lots of competition.

American Express shares were little changed in pre-market trading.

RELATED: 5 items to always buy in bulk

6 PHOTOS
5 items to always buy in bulk
See Gallery
American Express is officially selling its massive Costco business to Citi

Paper towels, $23.99 (12 rolls)

Photo via Getty

Dishwasher detergent, $12.82

Photo via Getty

Tooth paste, $7.44 (2 boxes)

Photo via Getty

Oatmeal, $9.96 (4 boxes)

Photo via Getty

Pasta, $10.44 (4 boxes)

Photo via Getty

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

NOW WATCH: How Apple Pay Could Destroy The Credit Card

See Also:

SEE ALSO: Warren Buffett will decide when it's time for changes at American Express

Read Full Story

Markets

DJIA 21,454.61 143.95 0.68%
NASDAQ 6,234.41 87.79 1.43%
S&P 500 2,440.69 21.31 0.88%
NIKKEI 225 20,130.41 -94.68 -0.47%
HANG SENG 25,683.50 -156.49 -0.61%
DAX 12,647.27 -23.75 -0.19%
USD (per EUR) 1.14 0.00 0.37%
USD (per CHF) 0.96 0.00 -0.09%
JPY (per USD) 112.34 0.15 0.13%
GBP (per USD) 1.29 0.01 0.98%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.