- Goldman Sachs won the bid for General Motors’ credit-card business for roughly $2.5 billion, The Wall Street Journal reported Thursday.
- The Wall Street giant beat out Barclays, acquiring more than one million GM cardholders and the $8.5 billion they spend annually, according to The Wall Street Journal.
- This is Goldman Sachs’ second co-branded card, following the Apple Card, as it looks to expand its consumer-lending business.
- The bank recently shuffled its organizational structure to create a new standalone consumer division that includes its Marcus lending unit.
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Goldman Sachs is picking up General Motors’ credit-card business for a price tag of roughly $2.5 billion, The Wall Street Journal reported Thursday, as it doubles down on its push into consumer lending.
Goldman beat out UK-based Barclays for the deal, which gives it more than one million GM cardholders and the approximately $8.5 billion they spend annually, according to The Wall Street Journal.
Goldman and GM did not respond to requests for comment.
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The paper initially reported in August that Goldman was looking to acquire GM’s card business away from Capital One, which currently issues GM’s three cards — the BuyPower Card, a business card, and a card for GM employees and suppliers — and has a year left on its contract.
According to Thursday’s report, Goldman and Capital One have reached an agreement on the general terms of the deal, such as top-line price, and plan to finalize the details in the next few weeks.
Landing GM’s card business would be Goldman’s second co-branded consumer credit card and another significant step into the consumer-lending business, following its underwriting of the Apple Card, which launched in 2019.
On Wednesday, Business Insider’s Dakin Campbell reported that Goldman has shuffled its divisions to create a new standalone consumer division that includes its Marcus lending unit. Strategy chief Stephanie Cohen and Tucker York, the head of its private-wealth business, will co-lead the new unit, which will be named the Consumer and Wealth Management Division. The changes will go into effect on January 1.