Capital One to buy HSBC US credit card arm

Associated Press reports that Capital One Financial Corp. said Wednesday that it will buy the U.S. credit card arm of Britain’s HSBC for a premium of about $2.6 billion as a way to expand its domestic credit card business.

“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,” Capital One Chairman and CEO Richard Fairbank said in a statement. The acquisition includes the HSBC unit’s approximately $30 billion credit card portfolio.
Capital One shares jumped $3.98, or 9.8 percent, to $44.80 in premarket trading.