Lloyds completes £1.9bn takeover of Chester credit card business MBNA

Lloyds Banking Group has this morning (June 1) announced the completion of its £1.9bn takeover of credit card business MBNA Ltd.

Following the receipt of regulatory and competition approval, Lloyds has now acquired Chester-headquartered MBNA from Bank of America subsidiary FIA Jersey Holdings Limited.

The terms of the eight-figure transaction were first revealed in December last year.

Lloyds said the deal is part of a wider strategy to grow its presence in the UK’s consumer finance sphere.

It is understood that the takeover will boost the bank’s slice of the credit card market from 15% to around 26%.

António Horta-Osório, Lloyds’ group chief executive, said of the transaction: “The acquisition, which is funded through strong internal capital generation, increases our participation in the UK prime credit card market, where we were underrepresented, and strengthens our position as a UK focused retail and commercial bank.

“The MBNA brand and portfolio are a good fit with our existing card business and we will focus on providing its customers with excellent service and value.”

He added: “Our proven integration capabilities and low cost to income ratio will deliver significant synergies and value to our shareholders.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.