Capital One Agrees to Buy Synchrony’s Portfolio of Walmart Loans

Capital One Financial Corp. said it will buy Synchrony Financial’s $9 billion portfolio of loans left over from a partnership with Walmart Inc., following months of acrimonious negotiations.

Capital One, which reached a deal with the retailer last year to begin issuing its private-label and co-brand credit cards, has agreed to an “attractive” price for the portfolio, Chief Executive Officer Richard Fairbank told analysts on a conference call on Jan. 22. Capital One plans to increase its allowances for loan losses by about $120 million as it makes the acquisition, he said.

Analysts at Credit Suisse Group AG had predicted ...