(June 7 – 16:00 ET) – Citibank Canada will buy Canada Trust’s MasterCard consumer credit card issuing business. Subject to regulatory and Competition Bureau approvals, the transaction should be completed by mid to late July. The transaction includes the transfer to Citibank Canada of Canada Trust MasterCard facilities and operations in London, Ontario.
Citibank Canada is extending offers of employment to all active Canada Trust MasterCard consumer credit card employees. This agreement does not include the sale or transition of either party’s merchant acquiring business. The value of the transaction was not disclosed.
The purchase reflects Citibank Canada’s desire to further develop the strength of its credit card business in the growing Canadian market. The opportunity arose as a result of TD Bank’s purchase of Canada Trust earlier this year. TD chose to continue its existing relationship with Visa.
“We are very pleased with all aspects of this transaction. We are very impressed with the quality of the customer base and the opportunity it provides to grow our presence in the market. Above all, we are excited to welcome so many talented people to the Citibank Canada team,” said Tom Jones, president, Citibank Canada Bankcards
Visa Canada does not allow financial institutions to issue of both Visa and MasterCard. Citibank Canada will be converting all of its Citibank Canada Visa credit card offerings to MasterCard.
-IE Staff