UBS on call as Lloyds agrees £1.9bn MBNA takeover

The deal for MBNA, announced on December 20, marks Lloyds’ first major acquisition since it had to be rescued in a taxpayer bailout after its tie-up with HBOS in September 2008.

Lloyds said in the statement that the acquisition of MBNA Ltd will add £650 million a year to its revenue and provide the opportunity to achieve cost savings of about £100 million a year within two years of completing the deal, which is expected to close in the first half of 2017.

António Horta-Osório, chief executive of Lloyds, said in the statement: “The acquisition, funded through strong internal capital generation, increases our participation in the expanding UK credit card market with a multi-brand strategy and advances our strategic aim to deliver sustainable growth as a UK focused retail and commercial bank.”

A Bank of America spokesman said it was self-advised by its investment banking unit Bank of America Merrill Lynch.

UBS has been corporate broker to Lloyds since January 2009 and was one of the advisers to the bank on its tie-up with HBOS.

The Swiss bank was also among the advisers when Lloyds sold its 50% shareholding in TSB Banking Group to Banco Sabadell in 2015. It was one of the bookrunners on the challenger bank’s initial public offering in June 2014 and the sole bookrunner on a subsequent sell-down by Lloyds in September that year.

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