From CNBC: 2025-04-18 12:11:00

Capital One Financial has been approved by the Federal Reserve and the Office of the Comptroller of the Currency to acquire Discover Financial Services in a $35.3 billion all-stock deal. The merger will expand Capital One’s deposit base and credit card offerings, with Capital One shareholders holding 60% of the combined company.

The application for the acquisition was evaluated under various factors, including financial and managerial resources, community needs, and competitive impacts. Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a 26% premium. The deal is expected to close on May 18, as announced by Capital One and Discover.

Capital One and Discover are both prominent credit card issuers in the U.S. The joint statement from the two companies expressed expectations for the merger to enhance competitiveness in the market. The acquisition will also result in Capital One indirectly acquiring Discover Bank through the transaction.

Read more: Capital One and Discover merger approved by Federal Reserve