Goldman Sachs Group is purchasing General Motors‘s credit card business for about $2.5 billion, the Wall Street Journal reported on Thursday, citing people knowledgeable with the matter.
The Wall Street bank won the bidding for the deal over Barclays Plc, the report noted.
GM’s credit card issuer Capital One Financial and Goldman have agreed upon the purchase cost and expect to complete the deal in the coming weeks, the report said.
The acquisition will improve Goldman’s focus on its consumer banking business, which it is expanding to even out volatile results from sectors such as trading and investment banking.
Goldman at this moment has a much smaller presence in consumer banking, unlike larger rivals JPMorgan Chase and Citigroup Inc, and it is an area CEO David Solomon has been looking to strengthen.
It is the bank’s second major credit card partnership, following the launch of a card with Apple Inc in 2019.
The purchase would also come at a time when American households are cutting back on debt in response to the coronavirus crisis.
