Goldman Sachs Group (NYSE: GS) is acquiring the credit card business of General Motors Co (NYSE: GM) for $2.5 billion, the Wall Street Journal reported Thursday.
What Happened: The banking giant will reportedly pay nearly $2.5 billion for the acquisition of the card business.
Goldman reportedly beat Barclays Plc (NYSE: BCS) in bids and stands to gain access to more than a million GM card accounts with $8.5 billion in annual spending, people familiar with the matter told the Journal.
The New York-based lender and GM card issuer Capital One Financial Corp (NYSE: COF) have agreed on the broad terms, including purchase price, and the deal is expected to come to fruition in the coming weeks, as per the Journal’s sources.
The GM credit card business reportedly has about $2.5 billion in outstanding balances.
Why It Matters: Goldman entered the business last year, launching