Particle.news
Download on the App Store
14 ARTICLES
·
last wk.

Capital One’s $35.3 Billion Acquisition of Discover Financial Secures Final Regulatory Approvals

The Federal Reserve and OCC conditionally approved the merger, imposing a $100 million fine on Discover, with the deal set to close on May 18, 2025.

Signage is seen outside a Capital One Bank in Manhattan, New York, U.S., November 12, 2021.
Image
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 $35.3 billion all-stock acquisition of Discover Financial Services.
  • Discover was fined $100 million by the Federal Reserve for overcharging interchange fees between 2007 and 2023, with restitution measures underway.
  • The merger will create the largest U.S. credit card issuer by outstanding balances, surpassing JPMorgan Chase in credit card loans.
  • Discover shareholders will receive 1.0192 Capital One shares per share, resulting in a 60/40 ownership split between Capital One and Discover shareholders in the combined entity.
  • The combined bank will have approximately $637.8 billion in assets, making it the eighth largest insured depository institution in the U.S.