Bank of America Corp on Thursday said it agreed to buy MBNA Corp, the world's largest independent credit card lender, for $35 billion, making the No. 2 US bank one of the world's biggest card issuers. The stock-and-cash transaction will double Bank of America's card base to 40 million, giving it $143 billion in card balances.
The bank will become a top rival to Citigroup Inc and JP Morgan Chase & Co in credit cards.
"It's a perfect fit," said Ted Parrish, who manages the Henssler Equity Fund and owns MBNA and Bank of America shares. "For Bank of America, it was the only big deal left."
Bank of America, which last year acquired FleetBoston Financial Corp for $48 billion, has about 10 percent of US deposits, the maximum allowed, forcing it to look elsewhere for growth.