Lloyds Banking Group £1.9 billion acquisition of MBNA

Overview:

• Lloyds Banking Group has acquired MBNA, the credit card provider, for £1.9 billion from Bank of America.
• MBNA has 7 million customers and has cards under various brands.
• The acquisition is the bank's largest deal since the 2008 financial crisis when it acquired HBOS.
• Lloyd's share of the credit market will rise from 15% to 26% after the acquisition.
• According to The Guardian, the deal includes a payment protection insurance (PPI) firewall, meaning that if total claims against MBNA rise above £240 million Bank of America will step in to pay the claims.
• The deal was announced in December 2016 but was inspected by the UK Competition and Markets Authority (CMA), which eventually cleared the deal in May 2017.
• The UK government is in the process of selling off its final stake in Lloyds.

Katrin Kostadinova - Data analyst