In a recent press release, Capital One™ announced the acquisition of HSBC’s US credit card branch. Announcement of the $2.6 billion purchase, completion of which is anticipated in the second quarter of 2012, immediately caused over a 2% jump in Capital One stocks.

HSBC, which bills itself as “The world’s local bank,” is headquartered in London, UK, and is the second largest banking and financial services group in the world, according to Forbes. The transaction, once completed, will position Capital One among the leading credit card service providers in the nation. According to the press release, “The acquisition includes ongoing private label and co-branded partnerships as well as infrastructure and capabilities that significantly enhance Capital One’s partnership platform for future growth.”

With an eye toward the future, Capital One is projecting significant returns for investors, up to approximately 25 %, as early as 2013 and is anticipating an earn back period of only four years after the completion of the acquisition. In addition, the expansion of Capital One’s credit card franchise will enhance the long-term generation of capital for investors.

On HSBC’s part, the move signals confidence in Capital One’s experience and ability in the credit card business as the completion of the transaction is nearly a year away. In the meanwhile, HSBC is assuring current card holders that they need anticipate no immediate changes to the credit card programs already in place. HSBC has stated that all HSBC card holders should be able to use their credit cards like normal. Capital One has made similar assurances that there are no changes scheduled for the near future and cardholders should expect to use their credit cards like they always have.

Looking forward to a smooth transition that benefits all parties involved, including American consumers who take advantage of Capital One’s or HSBC’s credit card services, Capital One will be offering employment positions to all HSBC’s personnel currently working for the branches involved in the Capital One acquisition.

Capital One Chairman and CEO, Richard D. Fairbank, stated, “We are very excited to work with our new retail and co-branded partners, as well as the HSBC associates who are joining Capital One. Together, we look forward to providing exceptional value and service to our new customers.”