Bank of America Sells MBNA to Lloyds Banking for $2.4 Billion

Shares of Bank of America were higher Tuesday after Lloyds Banking Group agreed to purchase its United Kingdom consumer credit card business, MBNA, for $2.4 billion.
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Shares of Bank of America (BAC) - Get Report were higher Tuesday after Lloyds Banking (LYG) - Get Report agreed to purchase its United Kingdom consumer credit card business, MBNA, for $2.4 billion. Keefe, Bruyette & Woods analysts said that upon completion of the sale, "Lloyds' market share in credit cards will increase from about 15% to 26%," highlighting that they haven't seen a significant general purpose credit card sale in some time. Lloyds said the deal is expected to provide an annual increase of $675 million to group revenue. Shares of Lloyds Banking were also higher following the news. The deal is expected to close in the first half of next year.