MSE News: Lloyds completes MBNA takeover - but 'no changes whatsoever' for customers 2 June 2017 at 11:43AM in Credit cards 18 replies 5K views

Former_MSE_Rosie

Lloyds Banking Group has this week completed its £1.9 billion takeover of credit card firm MBNA, but customers of both will see "no changes whatsoever" according to the banking giant...

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'Lloyds completes MBNA takeover - but 'no changes whatsoever' for customers'

jonesMUFCforever

We will see - there is no way Lloyds have agreed to pay £1.9 Billion for it to not make more money out of it - either higher interest rates or cuts in promotional rates.
On the other hand MBNA balance transfer rates always seemed higher than a lot of other lenders.
I also expect a tightening of the credit scoring for new applicants (and the managing away of unsatisfactorily accounts) once they get their feet under the table.

PeacefulWaters

There is, of course, the option of cutting a job or two in either LBG or MBNA.

virgo17

The article states that customers will see no difference.

If I was working for MBNA in Chester I would be just a tad worried.

adindas

Is it right to say that it is very likely that the LLoyds share will fall ??

Where is the platform to buy Lloyds within S&S ISA ?

Thanks

PeacefulWaters

virgo17 wrote: »

The article states that customers will see no difference.

If I was working for MBNA in Chester I would be just a tad worried.

They might have a plan to shift all the LBG card stuff to Chester.

Cardiff and Dundee might be worrying just as much.

eskbanker

adindas wrote: »

Is it right to say that it is very likely that the LLoyds share will fall ??

I'd say it's more accurate to say that any direct impact of the acquisition will long since have been baked into the share price. It's certainly started to reverse some of its recent gains over the past week but what makes you think there will be further reductions in the future, i.e. what do you know that you think the market doesn't?

adindas wrote: »

Where is the platform to buy Lloyds within S&S ISA ?

Not sure I understand the question - it would be a major surprise if any S&S ISA platform didn't allow you to purchase a popular FTSE100 share, although buying into it would seem odd if you believe it's going to fall!

adindas

eskbanker wrote: »

I'd say it's more accurate to say that any direct impact of the acquisition will long since have been baked into the share price. It's certainly started to reverse some of its recent gains over the past week but what makes you think there will be further reductions in the future, i.e. what do you know that you think the market doesn't?

Not sure I understand the question - it would be a major surprise if any S&S ISA platform didn't allow you to purchase a popular FTSE100 share, although buying into it would seem odd if you believe it's going to fall!

I have read many times that in Merger and Acquisition case the acquiring firm share is likely to fall because they usually required to pay a premium. High probability to recover in medium/long term as they are normally good in that business.

The premium is an incentive for the seller to accept the offer.

Edi81

That may be the case when a listed company takes over another listed company but mbna was not listed.

The fall in Lloyds share price could be down to a number of other factors e.g. the upcoming general election.

eskbanker

adindas wrote: »

I have read many times that in Merger and Acquisition case the acquiring firm share is likely to fall because they usually required to pay a premium. High probability to recover in medium/long term as they are normally good in that business.

The premium is an incentive for the seller to accept the offer.

I wouldn't necessarily disagree with that line of thinking but my point was more about timing, in that, even though the deal has only recently been fully completed, the price Lloyds paid for MBNA was known last year (as per the article on here at the time and it would have been known to the market before that) so will have been factored into the share price then, rather than now or in the future.

It's a bit like the sterling response to the Brexit referendum, where the value plummeted as soon as the result was clear, rather than being aligned with the actual departure in 2019.

Richmc

MBNA customers will see no changes, so still the c*ap customer service, I've experienced it on two occasions.
1) A company fraudulently taking a "subscription" from my account, MBNA's reaction "sort it out yourself".
2) A bill £140 for a hotel in Paris, I haven't left Cornwall in four years! they are still having problems sorting that one despite many promises. They closed the hacked account and opened a new one for me then promptly transferred the fraudulent transaction onto the new one UNBELEVABLE! Then they had the front to apply a foreign currency transaction fee.

Once this is finally sorted out I will be taking my credit account elsware.

My advice to anyone thinking of using them, NOT WITH A 10 FOOT POLE!