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Capital One-Discover Merger Secures Final Regulatory Approvals

The $35.3 billion deal will create the largest U.S. credit card issuer and the eighth-largest bank by assets, with the merger set to close on May 18, 2025.

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 approvals for Capital One’s acquisition of Discover Financial Services on April 18, 2025.
  • The merger will make the combined entity the largest U.S. credit card issuer by outstanding balances and the eighth-largest bank by assets, with $660 billion in total assets.
  • Discover must pay a $100 million fine for overcharging interchange fees from 2007 to 2023, with Capital One committing to compliance with remediation plans as part of the approval conditions.
  • Capital One shareholders will hold 60% of the merged company, while Discover shareholders will hold 40%, with Discover shareholders receiving a 26% premium in the all-stock transaction.
  • The merger will expand Capital One’s deposit base, enhance its credit card offerings, and provide direct access to Discover’s payment network, challenging Visa and Mastercard’s dominance.