- Goldman Sachs Group Inc (NYSE: GS) has reportedly won the bid for the credit card business for General Motors Company (NYSE: GM) in a deal valued at $2.5 billion
Goldman Sachs Group Inc (NYSE: GS) has reportedly won the bid for the credit card business for General Motors Company (NYSE: GM) in a deal valued at $2.5 billion, according to sources with The Wall Street Journal. Goldman Sachs has reportedly beat Barclays for the deal.
With this deal, Goldman Sachs will acquire over 1 million GM cardholders who spend about $8.5 billion per year. And this would be the second co-branded card by Goldman Sachs after the Apple Card as Goldman has been further pursuing expansion in the consumer lending business.
Under the leadership of Chairman and Chief Executive Officer David M. Solomon, Goldman Sachs recently shuffled its organizational structure in order to deploy a standalone consumer division — which includes the Marcus lending operations. Strategy head Stephanie Cohen and private wealth business head Tucker York will be co-leading the new unit. The new unit is called the Consumer and Wealth Management Division.
Back in August, The Wall Street Journal reported that Goldman Sachs was planning to buy GM’s card operations from Capital One. Capital One currently offers 3 GM cards, including a business card, a card for GM’s employees and suppliers, and the BuyPower Card.