Barclays PLC (BCS) said Tuesday that it will buy Citigroup Inc.'s (C) credit card business in Portugal, as it continues to push for expansion outside the U.K.

Barclays is acquiring about 400,000 credit card accounts with gross assets of about EUR644 million, it said.

The bank didn't disclose how much it is paying for the business. The Wall Street Journal has reported the figure to be less than $100 million, citing people familiar with the acquisition.

Barclays currently has more than 130 branches in Portugal, and Frits Seegers, chief executive of Barclays Global Retail and Commercial Banking, said the acquisition will put the bank among the five top credit card players in the country.

"With this acquisition, we will deliver a real step change in our business, significantly increasing Barclays Portugal's customer base and providing extensive cross-sell opportunities," Seegers said.

Earlier Tuesday, Barclays Chief Executive John Varley said the goal for the bank's global retail and commercial banking business is to have half of its profit generated from international operations.

In the first half of 2009, businesses outside the U.K. accounted for 18% of the operation's profits.

Citigroup, which has been hard hit by the global financial crisis, is pulling back its presence in the U.S. and abroad.

In a recent presentation, CEO Vikram Pandit classified the bank's Western Europe retail banking and cards portfolios as non-core assets.

"The transaction is in line with Citi's goal to reduce assets, tightly manage risks and optimize the value of assets in Citi Holdings, while working to generate long-term profitability and growth from Citicorp, which comprises its core franchise," Citigroup said in a separate statement.

Barclays' acquisition is subject to competition clearance by Portuguese authorities and is expected to close before the end of the year.

At 1037 GMT, Barclays shares were up 6 pence, or 1.6%, at 371 pence in a slightly lower overall market.

-By Patricia Kowsmann, Dow Jones Newswires. Tel +44(0)207-842-9295, patricia.kowsmann@dowjones.com