According to reports, American Express is in discussions to take over the Apple credit card and other services, while Goldman Sachs is allegedly considering terminating its association with Apple. Apple has been increasing the range of financial products it offers in order to increase service revenue.
The Wall Street Journal said that Goldman Sachs Group Inc. is thinking about ending its alliance with Apple Inc. It acted as a connection that propelled the iPhone manufacturer into the financial sector.
According to the WSJ story, which cited unnamed people familiar with the issue, the bank is now in negotiations with American Express Co. regarding taking over the Apple credit card and other services that the two jointly offer.
They said that Apple is well aware of the current discussion, which has been going on for several months. Transfer approval would be required from the tech business.
Apple’s foray into financial services with Goldman Sachs’ assistance is a part of a larger strategy to increase service-related income. According to the Wall Street Journal, the internet giant now gets around 20% of its sales from that sector, up from less than 10% a decade ago.
Recently, a long-promised beneficial savings account was also unveiled by Apple and Goldman Sachs. However, the digital giant has been establishing the framework for its financial services to rely less on partners.
According to the Journal, Goldman Sachs has also explored switching its card arrangement with General Motors Co. to American Express or another issuer. A partnership with American Express is not, however, imminent or certain just yet.
In after-hours trade, American Express shares rose 1.1% while Goldman Sachs and Apple shares hardly moved.
It is important to highlight that, for the first time in five years, Goldman Sachs Group Inc. has lost its position as the top mergers and acquisitions (M&A) counsel in the world.
With an involvement in $237 billion of transactions, which gave them an 18.8% market share, Goldman dropped to second place. In the first half of 2018, Goldman last finished second for a half-year period.
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The planned completion date for the merger of HDFC-HDFC Bank is currently July 1. The earliest record date is presently July 13. The formalities between the two parties are getting closer to being finished.
