Tuesday, August 21, 2007 Bank merger acquires American Express in RP
MANILA - Banco de Oro-EPCI Inc. (BDO) acquired the American Express business in the Philippines, which includes the American Express Philippines US Dollar and Peso Card portfolios as well as the consumer banking services of American Express Savings Bank (AESB).
Concurrent with the sale, BDO has also entered into a partnership agreement with American Express that allows BDO to issue American Express cards in the Philippines.
The said transaction is still subject to regulatory approvals.
BDO (which will be renamed Banco de Oro Unibank Inc.) announced its bid to add the American Express brand to its roster of banking products and services.
The deal represents an opportunity to leverage BDO’s branch network to offer American Express-branded cards.
High-spending
Analysts noted that American Express holds a portfolio of “high-spending customers.”
BDO president Nestor V. Tan said “We are acquiring the business to consolidate our position in the credit card market, and our ongoing partnership with American Express will allow us to fill in the gap in the higher-end market. At the same time, we will be able to strengthen our hold on the mass affluent market as we will eventually consolidate AESB with BDO Private Bank.”
Elaborating on the partnership, Ian Fish, president of AESB said, “American Express already has a strong presence in Philippines and we are delighted to take this to the next level through this partnership with BDO. “
“This move demonstrates our commitment and continued confidence in the Philippines, an important market for American Express.” (PR)
