According to sources familiar with the matter at hand, Goldman Sachs Group Inc is buying General Motors Co’s credit card business for around $2.5 billion (£1.94 billion).
According to a report from the Wall Street Journal, Goldman Sachs beat Barclays Plc and came through with the winning bid.
General Motors Co’s card issuer Capital One Financial Corp and Goldman have agreed on a purchase price agreement and expect to iron out the deal in the coming weeks.
The deal is expected to enhance Goldman Sach’s focus on its consumer banking business, which is being expanded to even out volatility from its other segments including investment banking and trading.
Unlike its larger peers, such as Citigroup Inc and JPMorgan Chase & Co, Goldman currently has a relatively smaller presence in consumer banking sector.
The deal marks the bank’s second major credit card partnership, following its 2019 launch of a card with Apple Inc.
Both, Barclays and Goldman declined comment.
General Motors did not immediately respond to requests for comments.