Capital One To Expand With $2.6B HSBC Deal
August 10, 2011 by UPI - United Press International, Inc.
MCLEAN, Va., Aug. 10 (UPI) — Capital One Financial said Wednesday it had agreed to buy the U.S. credit card division from HSBC for about $2.6 billion in a cash and stock deal.
The deal is not expected to close until the second quarter of 2012, Capital One said in a statement. The firm said the acquisition was “an excellent fit,” with the firm’s credit card business.
“The transaction delivers compelling long-term shareholder value, as it is expected to improve Capital One’s earnings and long-term capital generation trajectory,” the statement said.
The deal would result in a reduction of about $350 million in operating costs, the firms said.
HSBC currently has a $30 billion U.S. credit card portfolio.
HSBC recently said it would lay off 30,000 employees as part of a restructuring process that would cut costs by $3.5 billion