AMMB strengthens foothold with MBF Cards acquisition

KUALA LUMPUR: AMMB Holdings Bhd is now officially the new owner of MBF Cards (M) Sdn Bhd following approval by Bank Negara of AMMB’s proposal to acquire MBF Cards for RM623.4mil.

With the integration of the businesses, AMMB will strengthen its foothold in the credit card landscape with an enlarged cardmember base and merchant network.

The integration will also generate significant synergies for the group.

Meanwhile, it is business as usual for both organisations that will continue to run separately through to the middle of 2013, using the current network.

AMMB group managing director Ashok Ramamurthy said in statement yesterday that with more than 45,000 merchants-in-force, this would clearly make AmBank the top three merchant acquirer in Malaysia. Ramamurthy added that the acquisition would increase card receivables to RM2.3bil and give the group full control over the line of credit business model, an existing arrangement in which AmBank provides financing to MBF Cards cardmembers, which will expire in mid-2017.

“We will have strengthened our rank at number six with the combined cards in circulation,” he said

Ambank Group chairman Tan Sri Azman Hashim said the acquisition enhanced the profile of its merchant acquiring and card issuance businesses with a greatly enlarged merchant network and an increase in receivables.