Washington
Mutual, the leading American savings and loan,
has announced that it is acquiring Providian,
the American credit card issuer, in a deal worth
6.45 billion dollars (5.33 billion euros).
This acquisition will enable Washington Mutual,
which is paying 89% in shares and the rest in
cash, to expand its retail banking and consumer
credit business. Washington Mutual's existing
relationships with 13 million households will
be boosted by the 9.5 million households that
form Providian's customer base.
The deal is due to be finalised in the fourth
quarter 2005.
