Bank of America’s Canadian portfolio sale to
TD bank has led to mounting speculation over potential buyers for
its UK & Ireland portfolio.
The bank has one of the largest European
credit card portfolios, will divest its consumer credit-card
operations in the UK and Ireland.
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In a statement to CI, BofA Merill
Lynch said: “Our European consumer credit card business is a
successful and profitable operation with a highly skilled workforce
in Chester and Carrick on Shannon, and we will be seeking to bring
certainty for our employees by identifying an appropriate solution
as quickly as possible. We are in the early stages of the
process and our ultimate decision will be based on what is in the
best interest of our shareholders, employees, customers, and
partners. In the meantime, it is business as usual.”
According to one analyst, the field of possible buyers is small.
“Virgin has the money, Barclays has the appetite and the
track-record for buying up weak portfolios, and Santander is
looking to grow its UK card portfolio,” they said. “It could even
be sold for less than book value.”
The Financial Times also puts the Nation
Australia Bank in the frame, and agrees that there is not likely to
be a rush of offers given the portfolio’s exposure to the Irish
economy.
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