BMO Financial Group Announces an Agreement to Acquire the Diners Club North American Franchise
- Tuesday, November 24, 2009, 10:24
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BMO Financial Group has announced today that it has signed a definitive agreement to purchase the Diners Club North American franchise from Citigroup, a move that will immediately more than double BMO’s overall Corporate Card business.
This transaction will give BMO exclusive rights to issue Diners Club cards to corporate and professional clients in the U.S. and Canada.
Diners’ corporate Travel and Entertainment (T&E) expense card program enhances BMO’s own T&E offering in the market and it complements BMO’s successful Purchasing Card (PCard) program.
The total agreement represents net receivables of almost US $1 billion and approximately US $57.8 billion in card transactions.
Frank Techar, President and Chief executive officer for Personal and Commercial Banking has noted that this acquisition will enhance their competitive position by placing BMO among the top Commercial Card issuers in North America.
This deal strengthens BMO’s global reach.
Diners Club is recognized around the world as a premier card program for employee Travel & Entertainment expense cards.
By acquiring this franchise, BMO is able to offer the best benefits by combining MasterCard acceptance and the capabilities of Diners Club highly regarded rewards program.
Under the agreement made, Citigroup will continue to provide full support until Diners Club business is fully integrated within BMO.
As part of the acquisition, BMO will retain key resources responsible for product delivery, sales and customer service.
The acquisition, which is subject to certain closing conditions, includes regulatory approval, is anticipated to close before March 31st, 2010.
Included in this acquisition is the following:
• The Award winning Club Rewards Program
o Designed for frequent business travellers
o Features multiple hotel and airline partners
o Ability for customers to convert their Club Reward points to airline partner points
o Club Reward points can also be redeemed for high end merchandise, travel, hotels and much more
• Diners Club Professional Card
o This meets the needs for frequent business travelers and affluent consumers
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My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top.
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