Capital One and HSBC finish business negotiations
Capital One will be taking over the credit card arm of HSBC.
International business negotiations between Capital One and HSBC have been completed.
An agreement is now in place that will see the former take over the latter's US credit card business for a premium of $2.6 billion (£1.6 billion).
Richard Fairbank, chairman and chief executive officer of Capital One, noted the acquisition offers an "attractive strategic and financial opportunity".
"Adding the HSBC card business to our own will enhance our credit card franchise and accelerate our achievement of a leadership position in retail card partnerships," he added.
The specialist continued by saying Capital One - headquartered in the US state of Virginia and one of the ten biggest banks in the country based on deposits - is looking forward to working with the new partners, as it looks to improve the service its customers currently receive.
Negotiation skill may have been required in order to carry out the purchase, which is expected to be ratified and completed by the second quarter of 2012.
Posted by Ken Hayes