Chicago-based private equity firm Apollo Global Management has partnered with Goldman Sachs in a joint bid for US-based credit card giant MBNA’s Europe division. Financial details of the auction were not disclosed.
MBNA was the world’s largest credit card issuer when Bank of America acquired the company in 2006. Its European unit employs more than 3,000 people in the UK. Apollo and Goldman are said to be through to a second round of bids for the unit.
Bank of America said in August it planned to sell MBNA’s card operations in the UK and Ireland, which would reduce its balance sheet by more than £10bn.
According to the firm’s quarterly results for the third quarter of 2011, the change was primarily driven by Apollo’s incentive business, which reported an economic net loss of $1.16bn for the period, compared to an economic net income of $230.8m for the same period the previous year.
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