TD Bank Group has recently announced that it has completed the acquisition of substantially all of MBNA Canadaâ€™s credit card portfolio, not to mention other assets and liabilities from Bank of America Corporation.
MBNA Canada is currently the largest MasterCard issuer and the fourth largest credit card issuer in the country. With the end of this transaction, TDâ€™s Canadian credit card business is expected to have approximately 5.8 million active accounts. TD also expects to complete the conversion of this acquisition in about 18 months from now.
Tim Hockey, President and CEO, TD Canada Trust explained that the completion of this transaction will significantly increase TDâ€™s current existing Canadian credit card business. With this acquisition, TD will be positioned as the top issuer in the country.
What will happen to current MBNA Canada customers?
With the conversion of this acquisition expected to be complete in about 18 months, it means business as usual for MBNA Canada customers. What this means is that in the meantime, nothing will change for MBNA Canada customers, as MBNA Canada will continue to operate on a standalone basis.
MBNA Canada offers great credit cards, such as the MBNA SmartCash Platinum Plus MasterCard. At the very least, MBNA Canada customers have over a year and a half to reap the benefits of using such a great cash back credit card.
I am not sure what TD plans on doing with this new acquisition; I can only assume they plan on becoming a dual credit card issuer, and hopefully we will see TD MasterCardsâ€™ on the market.
I do not see why TD would not want to keep some of MBNA Canadaâ€™s credit card lineup, from what I have seen they offer great credit cards that the public enjoys to use, then again this is just my opinion on the topic.
I for one am glad to see TD acquire MBNA Canadaâ€™s credit card business as it will help them build on their increased scale of credit card business and in the long run gain new customers using current and new products.
What do you think of the TD purchasing MBNA Canadaâ€™s credit card business?