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Capital One and Discover Merger Secures Final Regulatory Approvals

The $35.3 billion deal clears its last hurdles, creating the largest U.S. credit card issuer and setting a May 18 closing date.

Signage is seen outside a Capital One Bank in Manhattan, New York, U.S., November 12, 2021.
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Capital One and Discover credit cards arranged in Germantown, New York, US, on Tuesday, Feb. 20, 2024.

Overview

  • The Federal Reserve and Office of the Comptroller of the Currency granted conditional approval for Capital One's acquisition of Discover Financial Services on April 18, 2025.
  • The merger will form the largest U.S. credit card issuer by loan volume, with consolidated assets of approximately $637.8 billion, making it the eighth-largest insured depository institution in the country.
  • Regulatory conditions include a $100 million fine for Discover overcharging interchange fees from 2007 to 2023 and a requirement for Capital One to address Discover’s outstanding enforcement actions.
  • The all-stock transaction offers Discover shareholders a 26% premium and allocates 60% ownership of the combined entity to Capital One stakeholders and 40% to Discover stakeholders.
  • Consumer advocates opposed the merger, citing reduced options for subprime borrowers, but regulators concluded the deal would not substantially lessen competition.