Capital One Financial Corp.'s (COF) Capital One Canada unit has agreed to acquire and service GE Capital Retail Finance's Hudson's Bay Co. credit-card portfolio and related assets, with outstanding receivables of about C$1.3 billion.
Terms weren't disclosed.
Capital One Canada and GE Capital Retail, the consumer lending unit of General Electric Co. (GE), said the deal will see the transfer to Capital One Canada of about 400 GE employees involved in the Hudson's Bay financial-services business. They will continue to work on the Hudson's Bay credit-card portfolio at locations in Toronto and Montreal.
Hudson's Bay, Canada's oldest commercial operation, operates department stores under several banners. It's owned by Hudson's Bay Trading Co., which is in turn owned by private-equity firm NRDC Equity partners.
Capital One Canada said it will aim to strengthen the Canadian retailer's credit and loyalty portfolio.
The Canadian market wasn't a strategic one for the GE unit, the companies said.
-By Carolyn King, Dow Jones Newswires; 416-306-2100; firstname.lastname@example.org