Capital One to acquire HSBC's U.S. credit card business for $2.6 billion  When HSBC announced earlier in the year that it was looking to trim its workforce and unload some of its less profitable divisions, many analysts believed that Capital One would step in to purchase the European bank's credit card unit. This week, the news was made official.

According to a report from The New York Times, Capital One said this week it will buy HSBC's U.S. credit card unit for $2.6 billion in cash and stock. The move from Capital One comes just two months after the company announced it had purchased ING Group's U.S. online banking operations for $9 billion.

Capital One has moved to increase its credit card division, especially among high earners. The acquisition will help it to bolster its market share in the U.S., according to industry experts. HSBC said in a statement that it will continue to offer consumer credit through its HSBC USA credit card program.

Nonetheless, the deal allows HSBC to reduce some of its exposure in the U.S. The London-based bank has worked to increase earnings in developing countries like Brazil and India.

Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours