Capital One Buys HSBC Credit Card Unit
Capital One Financial Corp. continues to shop for growth and expansion.
The credit card issuer-turned-large-bank is paying $32.7 billion for the U.S. credit card division of the British HSBC to purchase $30 billion of credit card loans and store-branded credit cards. The deal will be completed in the second quarter of 2012.
The deal includes HSBC’s private label or store-branded cards and will make Capital One the third-largest issuer of private-label cards, according to the Wall Street Journal. The private label cards include Best Buy, Saks, and Neiman Marcus Inc.
HSBC will keep its corporate card business.
Capital One announced in June that it is paying $9 billion for ING’s American online banking operations.