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Bank to bulk up credit card operation

Lloyds ‘returns to M&A’ with £7bn MBNA bid

Intu credit card MBNALloyds Banking Group looks poised to make its first acquisition since its 2009 bail-out by acquiring the MBNA credit card business.

Sources say it has moved ahead of the US private equity business Cerberus among those bidding for the Bank of America operation.

It is thought to have offered £7 billion for the business, representing a return to M&A activity since being barred from acquisitions when it was rescued by the taxpayer.

The bank is now back in profit and has restructured its business. The Treasury has also reduced irs holding from about 43% to below 10%.

According to the FT, MBNA will be a good fit with Lloyds’ car finance and leasing businesses.

MBNA has five million customers but a deal with Lloyds would give the bank around a quarter of the credit car market which is likely to attract competition interest.

There is said to be some concern in Chester, where MBNA’s UK business is based, that 1,700 jobs could be relocated to Lloyds’ other offices around the UK.

 

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