May 30, 2007

MBNA Canada Bank has reached an agreement to acquire CUETS, the largest MasterCard credit card issuer for credit unions in Canada. 
  
 The acquisition significantly increases the size and capabilities of MBNA Canada Bank, a subsidiary of Bank of America.

 "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.

CUETS will become a subsidiary of MBNA Canada Bank, 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 said.

He 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."

Click here for the news release.