Capital One to buy HSBC credit card business

@CNNMoney August 10, 2011: 7:34 AM ET
Capital One to buy HSBC's domestic credit card arm

NEW YORK (CNNMoney) -- Capital One announced Wednesday that it will purchase the U.S. credit card arm of HSBC for $2.6 billion.

HSBC (HBC) has a credit card portfolio with $30 billion in receivables.

Capital One (COF, Fortune 500) said it expects to complete the acquisition in the second quarter of 2012.

"The acquisition of HSBC's domestic card business is an attractive strategic and financial opportunity in a business we know well," said Capital One Chief Executive Richard Fairbank, in a press release.

For HSBC, the sale is part of a strategic realignment that includes the recently announced sale of 195 U.S. branches in western New York state to First Niagara Corp. (FNFG)

It also said it was closing retail businesses in Russia and Poland, shutting three insurance businesses. The company's plans will result in a total of 30,000 jobs lost worldwide over the next few years.

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In June, Capital One said it would acquire online banker ING Direct. The deal would make Capital One the nation's fifth largest deposit gatherer, behind Bank of America (BAC, Fortune 500), Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Citigroup (C, Fortune 500). To top of page

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