MBNA Canada Bank to Acquire CUETS

From Newswire, seems like the Canadian credit card space is going to be more aggressive now...

OTTAWA, Ontario, May 30 /CNW/ -- MBNA Canada Bank and CUETS today
announced an agreement for MBNA to acquire CUETS, the largest and most
respected MasterCard credit card issuer for credit unions in Canada. Under
the terms of the agreement, CUETS will become a subsidiary of MBNA Canada
Bank, leveraging superior capabilities of both companies to increase customer
value and grow market share in Canada.
The acquisition significantly increases the size and capabilities of MBNA
Canada Bank, a subsidiary of Bank of America, solidifying its position as the
country's leading provider of affinity and co-branded consumer lending
products and the second largest MasterCard issuer in Canada based on loans
outstanding.
"We are bringing together two great consumer lending organizations with
highly complementary strengths, similar business models, and a shared passion
for serving the unique needs of Canadians," said Debra Armstrong, president,
MBNA Canada Bank. "By partnering together, CUETS and MBNA have raised the bar
in the marketplace, providing credit unions with a greater opportunity to
provide superior payment products to Canadians."
CUETS is currently jointly owned by Credit Union Central of Saskatchewan
(SaskCentral) and Credit Union Central Alberta Ltd. The agreement is subject
to regulatory approvals. The new MBNA Canada subsidiary housing the CUETS
business will be led by Stan Kuss, currently chief executive officer of CUETS.
CUETS' workforce, which is primarily based out of a head office in Regina and
a service centre in Winnipeg, will be combined with the current MBNA
workforce, which works out of MBNA's head office in Ottawa.
CUETS board chair and CEO of SaskCentral, Sid Bildfell, said the sale is
a strategic move that is in the best interest of CUETS, its credit union
clients and their members. "CUETS and its clients will now have the
opportunity to incorporate the MBNA products, service and marketing strategies
to achieve even greater results with their programs."
Bildfell also noted that CUETS will stay committed to the communities in
which it operates. "Our sale arrangement with MBNA includes a continued
presence for CUETS and employment of CUETS employees in our home cities of
Regina and Winnipeg."

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About MBNA Canada Bank
>>
MBNA Canada Bank, a subsidiary of Bank of America Corporation, is the
leading provider of co-branded and affinity credit card programs in Canada,
and the second largest MasterCard issuer in the country. MBNA credit cards
and related products and services are endorsed by nearly 500 Canadian
organizations. MBNA provides financial products and services throughout
Canada from its headquarters in Ottawa.

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About CUETS
>>
CUETS is a national supplier and partner in the Canadian co-operative
system, providing a complete range of advanced payment systems and services to
credit unions, caisses populaires, cardholders, merchants and other
organizations. CUETS offers MasterCard(R) products and services, backed by one
of the most widely recognized brands in the world. The CHOICE REWARDS(R)
loyalty program gives participants flexibility in merchandise and travel
rewards selection. CUETS is based in Regina, Saskatchewan, Canada. To learn
more about CUETS, visit www.cuets.ca.

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About Bank of America
>>
Bank of America is one of the world's largest financial institutions,
serving individual consumers, small and middle market businesses and large
corporations with a full range of banking, investing, asset management and
other financial and risk-management products and services. The company
provides unmatched convenience in the United States, serving more than 56
million consumer and small business relationships with more than 5,700 retail
banking offices, more than 17,000 ATMs and award-winning online banking with
nearly 22 million active users. Bank of America is the No. 1 overall Small
Business Administration (SBA) lender in the United States and the No. 1 SBA
lender to minority-owned small businesses. The company serves clients in 175
countries and has relationships with 98 percent of the U.S. Fortune 500
companies and 80 percent of the Fortune Global 500. Bank of America
Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.