Goldman Sachs company will buy GM business, which issues credit cards
Goldman Sachs has announced the acquisition of General Motors, a credit card business unit. The deal will total $2.5 billion. The owner of the business is Capital One Financial bank, which has been issuing credit cards under GM brand since 2012. According to the representatives of the companies, the purchase is to be completed in the next few months.
At the end of last summer Goldman together with several other corporations placed an offer to purchase a credit division of the car manufacturer. This direction GM has credit cards in its portfolio, the total debt of which is about 2.5 billion dollars. In addition to Goldman, the acquisition was claimed by Barclays Bank from the UK.
The deal with GM is promising for the American financial conglomerate. It will strengthen Goldman’s position in the segment of retail banking services. Since 2016, the online bank Marcus, which during its existence has issued loans worth 7 billion dollars. According to the plans of Goldman, the Marcus direction by 2025 should reach 20 billion dollars.
Investment Bank has no known to many consumers brand or physical representations, so to develop units, it attracts customers by working with popular and recognizable companies. For example, in 2019 Goldman introduced a credit card, which was created jointly with the corporation Apple.
For Goldman, like Barclays, the purchase of General Motors was interesting in terms of promoting e-commerce platforms through cars. And this variant of cooperation is attractive not only for such payment systems as Visa and Mastercard, but also for car manufacturers. However, consumers have not yet appreciated such an idea, and its popularity remains low.
Goldman Sachs is a powerful financial conglomerate, which is included into Dow Jones index. It was founded in 1869 and its main office is located in New York.
The investment bank originates from the company of Marcus Goldman, which was engaged in the purchase and resale of bills. In 1885, the founder’s son-in-law entered the firm, and their partnership was renamed Goldman, Sachs & Co. Over time, the company’s range of services expanded to include mediation and consultation to various businesses. Since 1896, the shares of the company have been traded on the New York Stock Exchange. The company helped others to carry out initial public offerings, among which was Ford Motor Corporation in 1956. Goldman Sachs actively invested in oil companies in the 60’s and 70’s, which gave it the status of an influential financial institution. The same position the conglomerate occupies to this day, provides a huge range of services for business and individuals.