Capital One To Acquire Discover In $35 Billion Deal

The Associated Press reports:

Capital One Financial said it will buy Discover Financial Services for $35 billion, in a deal that would bring together two of the nation’s credit card companies as well as potentially shake up the payments industry, which is largely dominated by Visa and Mastercard.

Under the terms of the all-stock transaction, Discover Financial shareholders will receive Capital One shares valued at nearly $140. That’s a significant premium to the $110.49 that Discover shares closed at Friday.

It’s unclear whether the deal will pass regulatory scrutiny. Nearly every bank issues a credit card to customers but few companies are credit card companies first, and banks second.

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Capital One to buy Discover for $35 billion in deal that combines two of nation’s largest credit card companies. https://t.co/aS09109FRF

— ABC News (@ABC) February 20, 2024