TD Bank Group (TD) to Buy MBNA Canada's Credit Card Business for $8.5 Billion, Exits U.K. Business
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TD Bank Group (NYSE: TD) and Bank of America Corporation (NYSE: BAC) today announced a definitive agreement under which TD Bank will purchase MBNA Canada's credit card portfolio, as well as certain other assets and liabilities.
TD will pay a modest premium on an expected $8.5 billion of credit card receivables at closing.
"We are very pleased to be acquiring MBNA Canada's credit card business. This acquisition will position TD as a top card issuer in Canada," said Ed Clark, Group President and CEO, TD Bank Group. "We've consistently said that we will seize good opportunities that make strategic sense, fit within our risk profile and are financially attractive. This franchise brings new customers to TD, provides attractive additional options for our customers and is a great complement to our existing high-growth credit card business."
Bank of America manages one of the largest credit card businesses in Europe, with portfolios in the U.K. and Ireland. Combined, these businesses have $19 billion in credit card loans and more than 4,000 employees.
Bank of America signed a definitive agreement on August 3, 2011 to sell the Spain card business to Apollo Capital Management, Inc.
Bank of America sold its $200 million portfolio of small business card loans to Barclays in April 2011.
TD will pay a modest premium on an expected $8.5 billion of credit card receivables at closing.
"We are very pleased to be acquiring MBNA Canada's credit card business. This acquisition will position TD as a top card issuer in Canada," said Ed Clark, Group President and CEO, TD Bank Group. "We've consistently said that we will seize good opportunities that make strategic sense, fit within our risk profile and are financially attractive. This franchise brings new customers to TD, provides attractive additional options for our customers and is a great complement to our existing high-growth credit card business."
Bank of America manages one of the largest credit card businesses in Europe, with portfolios in the U.K. and Ireland. Combined, these businesses have $19 billion in credit card loans and more than 4,000 employees.
Bank of America signed a definitive agreement on August 3, 2011 to sell the Spain card business to Apollo Capital Management, Inc.
Bank of America sold its $200 million portfolio of small business card loans to Barclays in April 2011.
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