Goldman Sachs to buy General Motors’ credit card portfolio
Goldman Sachs will acquire the credit card business of General Motors in a deal worth a reported $2.5 billion.
According to Wall Street Journal sources, Goldman has reached an agreement with GM’s card issuer, Capital One. A deal is expected to be finalised by the end of this week.
Goldman will gain access to the portfolio after Capital One’s deal with GM is expires in a year. It beat out a rival offer from UK bank Barclays.
Rumours about the deal first appeared in August.
Unlike other Wall Street giants, Goldman has a smaller footprint in the retail banking and consumer lending space.
Of the bank’s $1.3 billion Q2 revenues, retail and consumer banking accounted for only $258 million, roughly 20%.
Goldman offers personal loans and savings accounts through its online bank Marcus, which has grown quickly since a 2016 launch.
This new deal is the second major credit card partnership the bank has launched, following its deal with Apple in 2019.
According to figures from Business Insider, GM cardholders spend around $8.5 billion annually, almost double the amount spent by Apple Card customers.
Related: Goldman Sachs launches transaction banking service with Volante