HSBC Holdings Has Antitrust OK To Buy Neiman Marcus Card Assets

HSBC Holdings PLC’s (HBC) HSBC North America’s Retail Services Division received antitrust clearance from the Federal Trade Commission to buy the private-label credit card accounts and related assets of Neiman Marcus Group Inc. (NMGA) and its subsidiary Bergdorf Goodman Inc.

The agency said Wednesday that it granted early termination Tuesday of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act.

As reported June 13, HSBC will pay the net asset value of the assets acquired, which is estimated to be about $527 million, based on a final valuation of the credit card book and related assets.

The company said that under the agreement, Neiman Marcus will receive payments for a five-year period for services to be provided to HSBC Retail Services based on performance of the credit program.

Neiman Marcus, Dallas, will continue to handle core customer service functions such as new account processing, transaction authorization, billing adjustments, collection services and customer inquiries.