Under the terms of the deal, CUETS, the second largest MasterCard issuer in Canada based on loans outstanding, will become a subsidiary of the Canadian bank. The acquisition significantly increases the size and capabilities of MBNA Canada Bank, a subsidiary of Bank of America, and will further strengthen its affinity and co-branded consumer lending business.
We are bringing together two great consumer lending organizations with highly complementary strengths, similar business models, and a shared passion for serving the unique needs of Canadians, said Debra Armstrong, president, MBNA Canada Bank. By partnering together, CUETS and MBNA have raised the bar in the marketplace, providing credit unions with a greater opportunity to provide superior payment products to Canadians.
The company said the sale is a strategic move as it is in the best interest of CUETs, its credit union clients and their members.
The transaction is subject to regulatory approvals.
