August and September are traditionally
quiet times for mergers and acquisitions, although a few notable
deals have been struck. For those hoping for the mega-sized deals
which dominated M&A activity just a few years ago, the wait
goes on. CI’s dealwatch keeps track of the deals taking place in
the industry.
It is just over a year ago since US
investment banking powerhouse Lehman Brothers filed for bankruptcy,
setting off the cataclysmic shock waves which echoed throughout the
global economy, resulting in bank nationalisation and
consolidation, government bail-out and economic stimulus packages,
and a swift descent into recession.
Although many countries now appear to be
heading out of recession, the last two months of merger and
acquisition activity have been muted. However, of the deals that
have been done, this dealwatch is characterised by the number of
card portfolios that have changed hands. In the US, Citigroup has
off-loaded around $1.3 billion worth of credit card portfolios,
while, in perhaps an indicator of the worsening state of the
private-label credit card sector, retailer Charming Shoppes has
decided to hand over its credit card assets to Alliance Data
Systems. In Europe, HSBC made the decision to offload its Polish
credit card and consumer finance portfolio to newly-established
Alior Bank.
While HSBC’s decision may be surprising, given
that Poland is regarded as a prime consumer finance and card growth
hotspot, it is not unreasonable for HSBC to turn its attention to
the more profitable premier and middle-class consumer segments
elsewhere, and leaving local banks such as Alior to use their
domestic expertise to cultivate the rapidly growing banking class
in emerging markets.
Mergers and acquisitions |
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Date |
Bidder |
Target |
Value |
Location |
Business type |
Notes |
3/08/09 |
Metatron |
Just Data |
n/d |
US |
Payment processing |
Metatron, a US internet holding company, has |
13/08/09 |
Alliance Data Systems |
Charming Shoppes |
$110m |
US |
Card portfolio |
Charming Shoppes is to sell its private label |
13/08/09 |
FleetCor |
Retail Decisions |
n/d |
US |
Card portfolio |
FleetCor, the global fleet card company, has |
21/08/09 |
Elavon |
MB Financial Bank |
n/d |
US |
Merchant acquiring |
Elavon, a payments provider and subsidiary of |
24/08/09 |
Monitise |
Monilink |
£1.5m |
UK |
Mobile payments |
Monitise has bought out joint venture partner |
1/09/09 |
Western Union |
Custom House |
n/d |
US |
Payment service provider |
Western Union, the US money transfer |
1/09/09 |
n/d |
Citi |
n/d |
US |
Card portfolio |
US bank Citigroup has sold $1.3 billion of |
3/09/09 |
Elan |
Associated Bank |
n/d |
US |
Card portfolio |
US financial services company Elan has |
4/09/09 |
Alior |
HSBC Poland |
$350m |
Poland |
Card portfolio |
HSBC Bank Polska is to sell its HSBC |
8/09/09 |
Gemalto |
Trusted Logic |
n/d |
France |
Payment technology |
Gemalto, the European digital security |
n/d=not disclosed Source: CI, company |