Goldman Sachs and Barclays are among those vying for a share of General Motors’ (GM) credit card division, according to the Wall Street Journal (WSJ).
Citing people with knowledge of the situation, the paper said both companies are looking to buy the business, with the former hoping to expand its consumer banking unit.
Reuters picked up on the WSJ article, which said the credit card business has outstanding balances totalling around USD 3.00 billion.
Its sources added that a decision on the successful bidder is expected to follow within the next few weeks.
The WSJ said Goldman Sachs hopes to capitalise on the ecommerce technology which is incorporated into the dashboards of GM vehicles, thereby enabling drivers to order food and make other payments by simply tapping an icon on their dashboard screen.
This means users are able to carry out such tasks while driving as it negates the need to utilise a smartphone.
According to the WSJ, this is in line with Goldman Sachs’ push to establish cars as ecommerce portals.
None of the parties involved have commented on the report at this time.
Zephyr, the M&A database published by Bureau van Dijk, shows this is not the first time GM has been linked with an asset sale this year; on 29th July, Reuters reported that the firm could divest its electric vehicle assets, citing chief executive Mary Barra as saying such a move is not off the table.
Barra was responding to a question from a journalist as to whether the firm would consider a spinoff of the operations given the strong investor appetite for such a move and noted that any option which it feels would generate long-term value for shareholders could be on the cards.
© Zephus Ltd