Goldman Sachs Group Inc. is buying General Motors’ credit card business for about $2.5 billion, the Wall Street Journal reported Thursday, citing people familiar with the matter.
The Wall Street bank won the bidding for the deal over Barclays, according to the Journal.
GM’s credit card issuer Capital One Financial Corp. 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 CEO 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.