Egg to be bought by MBNA?

cronshd

Reports indicate that MBNA may purchase Egg (eg. see http://observer.guardian.co.uk/business/story/0,6903,1499273,00.html)

Another report indicated that other parties may also be interested in buying the company - and so there could be a 'scramble for Egg'.

With fewer players, and concentration in the hands of MBNA, it means less competition. Could it mean that in time, the stoozers favourite mule takes a well earned rest?

Any reactions of the longer term consequences of this consolidation?

Clariman

cronshd wrote:

Reports indicate that MBNA may purchase Egg (eg. see http://observer.guardian.co.uk/business/story/0,6903,1499273,00.html)

Another report indicated that other parties may also be interested in buying the company - and so there could be a 'scramble for Egg'.

With fewer players, and concentration in the hands of MBNA, it means less competition. Could it mean that in time, the stoozers favourite mule takes a well earned rest?

Any reactions of the longer term consequences of this consolidation?

There has been talk of Egg being sold off for a good few years now and other companies have been cited as potential buyers. IIRC CapitalOne took a look at them. I am very wary of stories I read in the press because they are often ill-informed, so I shall see how things unfold rather than join in too much speculation. I dare say that they will be bought at some time by some one and may be it will be MBNA.

If MBNA were to buy Egg then they could choose to run it exactly as it is - I think it has a good brand image that they might be loathe to destroy. OTOH, they would probably continue the brand but move the Ts & Cs closer to the normal MBNA Ts & Cs.

It would mean less SBT choice for the Stoozer, but let's not fret too much. Let's see what happens.

Clariman

Chadsman

cronshd wrote:

Reports indicate that MBNA may purchase Egg (eg. see http://observer.guardian.co.uk/business/story/0,6903,1499273,00.html)

Another report indicated that other parties may also be interested in buying the company - and so there could be a 'scramble for Egg'.

Are theses reports written by the same journos who keep telling us stoozing is dead? :rolleyes:
Nuff said

jonesMUFCforever

Quoted from Clariman
If MBNA were to buy Egg then they could choose to run it exactly as it is - I think it has a good brand image that they might be loathe to destroy. OTOH, they would probably continue the brand but move the Ts & Cs closer to the normal MBNA Ts & Cs.

That's what peole said when they bought Alliance and Leicester card services. Look what happened there - no cash back anymore, less days interest free etc etc.
If it should happen then I would seriously look for another card provider.
One good thing is that if they do try and buy Egg then it might be referred to the monopolies commission as then they will have a substantial amount of the credit card market which will delay things for a year or two and by then I will have taken advantage of the free interest free anniversary balance transfer offers.
Eric

pinkfluffybabe

These rumours of various companies taking over Egg have been on the go a long time. The best thing we can do is wait and see what happens, if things change, find another provider, but in the meantime continue to use Egg the way we currently do.

dodgy_gooner

"One good thing is that if they do try and buy Egg then it might be referred to the monopolies commission as then they will have a substantial amount of the credit card market which will delay things for a year or two and by then I will have taken advantage of the free interest free anniversary balance transfer offers."

I very much doubt it as although Egg are a well percieved brand they have relatively few accounts compared to the major players a merger like this with MBNA would make them no where near as big as Barclaycard for example.

Systemaddict_2

My thought:

One advantage of MBNA buying EGG may result in card holders "transferring" their EGG card credit limit over to MBNA card or visa-vera. This would result in a higher credit limit and may make BT viable given the increase in BT Fee imposed by MBNA.