Capital One gains approval for $35.3 billion all-stock merger with Discover Financial

From Nasdaq: 2024-12-25 21:30:11

Capital One (NYSE: COF) has received approval from the Delaware State Bank Commissioner to acquire Discover Financial (NYSE: DFS) in a $35.3 billion all-stock merger. The deal is expected to close in early 2025, with potential benefits including becoming the largest U.S. credit card company and leveraging Discover’s card network. Discover’s lower merchant acceptance could pose challenges, but Capital One’s capabilities could enhance it. Cross-selling financial products to Discover’s cardholders could boost revenues for the combined entity. The deal also presents opportunities for Capital One to enhance Discover’s merchant network. While Capital One stock has been volatile in recent years, the Trefis High Quality Portfolio has outperformed the S&P 500 consistently. The valuation of Capital One stock is estimated at $162 per share, slightly below the current market price.

Sources:
– https://www.trefis.com/data/companies/COF
– https://www.trefis.com/data/companies/DFS
– https://www.forbes.com/sites/greatspeculations/2024/12/19/whats-new-with-mastercard-stock/
– https://www.trefis.com/data/companies/PORTFOLIOS/no-login-required/RsQ6oXgC/High-Quality-Portfolio-30-Stocks-with-211-Return-Since-2016-vs-95-for-S-P-500
– https://dashboards.trefis.com/data/price-estimates

Please note that the views and opinions expressed in the summary are those of the author and do not necessarily reflect those of Nasdaq, Inc.



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