Capital One Closer to Buying HSBC Credit Card Portfolio

Published on:
9 August 2011 at 07:58 a.m. ET

http://www.insidearm.com/news/00006602-capital-one-closer-to-buying-hsbc-credit-/

Capital One Financial Corp. is in advanced talks to purchase the large U.S. credit card unit of HSBC, according to a report from Bloomberg.

London-based HSBC confirmed in a regulatory filing with the Hong Kong stock exchange Tuesday that it is actively seeking a suitor for the U.S. card portfolio, thought to be worth $30 billion. “These discussions are ongoing and no decision has yet been made to proceed with any transaction,” the bank said in its filing.

A separate source told Bloomberg that Capital One was in “advanced talks” to acquire the business.

HSBC initially acquired the credit card business in 2003 when it bought lender Household International. HSBC has noted that the credit card operation is profitable.

Capital One, the fifth-largest U.S. bank by total deposits, is already one of the largest credit card issuers in the world.