Goldman Sachs Group is buying General Motors’ 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 said.
The American automaker’s credit card issuer Capital One Financial and Goldman have agreed upon the purchase cost and expect to finalize the deal in the coming weeks.
The acquisition will improve Goldman’s focus on its consumer banking business, which is being expanded to even out volatile results from sectors such as trading and investment banking.
Goldman presently has a much smaller presence in consumer banking, unlike larger investors JPMorgan Chase & Co 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, after the launch of a card with Apple Inc in 2019.
The purchase would also come at a time when U.S. households are cutting back on debt to deal with the coronavirus crisis.
The companies are yet to comment on the report.