(Reuters) – Goldman Sachs Group Inc is buying General Motors Co’s credit card business for about $2.5 billion, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The Wall Street bank won the bidding for the deal over Barclays Plc, according to the report.
Capital One Financial Corp, which has been GM’s credit card issuer since 2012, and Goldman have agreed upon the purchase price and expect to finalize the deal in the coming weeks, the report said.
The acquisition will enhance Goldman’s focus on its consumer banking business, which it is expanding to even out volatile results from segments such as trading and investment banking.
Goldman currently has a much smaller presence in consumer banking, unlike larger peers JPMorgan Chase & Co and Citigroup Inc, and it is an area Chief Executive Officer David Solomon has been aggressively looking to strengthen.
It is the bank’s second major credit card partnership, following the launch of a card with Apple Inc last year.
The purchase would also come at a time when U.S. households are cutting back on debt in response to the COVID-19 pandemic.
Goldman Sachs and Barclays declined to comment, while GM did not immediately respond to a request for comment.
Reporting by Abhishek Manikandan in Bengaluru and Matt Scuffham in New York; Editing by Anil D’Silva and Devika Syamnath.