Citibank ponders NAB credit cards acquisition
Citibank Australia may make a takeover bid for the approximately A$4 billion credit cards business of National bank of Australia in an attempt to create the country's biggest credit card player, according to a report in The Australian.
We would certainly be interested in buying the NAB card business...They are the number four in the cards business. We are number five. If you combine the two, we would be number one. I think that combination is pretty attractive, said Citibank Australia chief executive Les Matheson, as quoted by The Australian. Citibank currently has a market share in the country's credit card sector of just under 10%, while NAB currently holds an approximately 15% share. According to The Australian, the current biggest player in the country is Commonwealth Bank with a 23% share. Citigroup, the parent company of Citibank, appears to be following a policy of aggressive inorganic growth in the credit cards sector. In June the corporation took its US credit cards business to new heights when it agreed to acquire the approximately $6.3 billion credit card receivables portfolio of Federated Department Stores.
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