Goldman Sachs is reportedly looking to acquire the credit card business of General Motors.
GM’s credit card business has been run by Capital One since 2012 and currently has $3 billion in outstanding balances. British bank Barclays is also said to be seeking to strike a deal with GM to purchase its credit card business.
The American car manufacturer currently has three credit cards on offer. The first is the BuyPower Card that offers savings on car purchases, among other perks. The second is a business card that offers three cash-back earnings tiers on purchases at gas stations, restaurants, and office supply stores. The final card is issued for GM employees and suppliers. The BuyPower Card is used by more than 7.7 million car shoppers.
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The Wall Street Journal understands that the sale of the business is yet to be set in stone and that GM could still opt to maintain Capital One as its current issuer. Representatives for General Motors, Goldman Sachs, and Barclays have all declined to comment on the reports.
Business Insider notes that if Goldman Sachs manages to land the deal to buy GM’s credit card business, it will form a key part of its plans to “establish itself as the consumer-friendly investment bank next door.” Last year, Goldman Sachs joined forces with Apple to launch the tech giant’s first consumer credit card, so we guess the aforementioned statement is very close to the truth.
