Lloyds Banking Group is set to submit a bid for MBNA, Bank of America's £7bn UK credit card business. Accounting for 11% of the UK credit card market, MBNA could be valued up to £1bn. The FT notes that while the bailed-out lender has been prevented from making acquisitions, its return to profit and renewed dividends have prompted analysts to speculate that it will have excess capital, which needs to be spent or returned to shareholders. The deal would see RBS take over the business from Barclays, which has been struggling with its own financial problems.
Lloyds Banking Group is set to submit a bid for MBNA, Bank of America's £7bn UK credit card business. Accounting for 11% of the UK credit card market, MBNA could be valued up to £1bn. The deal would see RBS take over the business from Barclays, which has been struggling with its own financial problems.