US companies in joint bid for MBNA

TWO US companies, Apollo Global and Goldman Sachs, are thought to have joined forces to bid for the MBNA credit card operations in Ireland and Britain.

TWO US companies, Apollo Global and Goldman Sachs, are thought to have joined forces to bid for the MBNA credit card operations in Ireland and Britain.

The latest expression of interest in the bank is thought to join bids from Virgin Money and Barclays.

Virgin Money has already stressed that, if it sought to buy MBNA, it would not be looking to bid for the whole portfolio but rather for the part of the credit card book that is made up of its own customers. It is not known how this would impact on the Irish side of the business.

According to the Financial Times, Virgin has run its credit card operations in partnership with MBNA since 2002 and its customers account for roughly £3.5 billion (STG) of the total book. As part of the deal, Virgin has the right to buy this slice of the business in the event of a sale.

See this week’s Leitrim Observer for the full story.