Major deal for credit card firm

Bank of America today unveiled a multi-billion pound deal for a major player in the UK credit card market.

US-based MBNA, which provides own-branded cards for organisations ranging from Manchester United to AOL, is to be bought for $35bn (€28.9BN).

The deal will double the size of Bank of America’s credit card operation to 40 million accounts, but could also involve 6,000 job cuts among a combined workforce of around 200,000 – of which 175,000 work for BoA.

MBNA employs around 4,000 people at Chester, as well as 1,000 staff in Ireland and further workers at a sales office in London.

It has more than 850 affinity relationships with groups in the UK, part of 5,000 such tie-ups worldwide.

BoA said the deal provided it with access to an attractive portfolio, as well as a foothold in Canada, the UK, Spain and Ireland.

Upon completion of the acquisition, BoA wil be one of the leading issuers of credit, debit, and prepaid cards based on total purchase volume. The deal also looks set to make BoA the fourth most profitable company in the world.

Bank of America said the agreement had been approved by both boards of directors and was subject to approval by regulators and MBNA shareholders.