Santander UK reportedly mulling takeover of MBNA
Santander UK is reportedly considering a takeover of Bank of America's UK credit card group MBNA.
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Sources told Sky News that Santander UK is looking to make a formal bid for MBNA next week at the deadline for offers.
Santander UK is said to be mulling the acquisition as a way of strengthening the balance sheet to deal with tough new industry reforms due to be implemented in 2019. The government reforms are designed to protect taxpayers and savers against a future financial crisis.
A takeover of MBNA could cast doubt on Santander’s interest in buying a separate set of assets from Royal Bank of Scotland. Santander and RBS are in negotiations over the sale of hundreds of branches and a big chunk of the personal current account and small business banking market.
MBNA has already attracted interest from Lloyds Banking Group, which is looking to grow its credit card business. While Lloyds is seen as the most likely buyer, some analysts believe such a substantial purchase could prevent the bank from paying a special dividend at the end of the year.