Goldman Sachs Group Inc (NYSE:GS) shares dipped on announcing plans to acquire the credit card business of General Motors (NYSE:GM) for $2.5 billion.
The Wall Street Journal reported Goldman won the bidding for the deal over Barclays Plc.
The Journal also said GM’s credit card issuer Capital One Financial Corp and Goldman have agreed upon the purchase price and expect to finalize the deal in the coming weeks.
The purchase will enhance Goldman’s focus on its consumer banking business, which it is expanding to even out volatile results from segments such as trading and investment banking.
Goldman currently has a much smaller presence in consumer banking, unlike larger peers JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc, (NYSE:C) and it is an area Chief Executive
Officer David Solomon has been aggressively looking to strengthen.
It is the bank’s second major credit card partnership, following the launch of a card with Apple Inc last year.
GS shares ducked lower $2.16, or 1.1%, to $196.39.
