Goldman Sachs to purchase General Motors’ credit card business worth $2.5 billion

On Thursday, Goldman Sachs Group Inc. (GS) announced that it would purchase General Motors Co’s (GM) credit card business for about $2.5 billion (£1.94 billion).

The American multinational investment bank and financial services company said that it would continue to join the growing list of lenders amid the coronavirus pandemic.

Goldman Sachs and GM’s credit card issuer Capital One Financial Corp. (COF) agreed upon the purchase price and said that the acquisition deal would be finalized in the next few weeks.

Goldman’s move would enhance the company’s focus on its consumer banking business and other segments such as trading and investment banking.

The Wall Street Journal reported that Goldman Sachs had earned access to over 1 Million cardholders who account for roughly $8.5 billion in spending per year.

It is Goldman’s second win in the credit-card sector, which launched its first credit card last year with Apple Inc. (APPL).