Capital One’s planned $35.3 billion acquisition of a rival credit card company, Discover, was approved by two regulators, Federal Reserve and the Office of the Comptroller of the Currency, on Friday.
April 18 Capital One’s planned $35.3 billion acquisition of a rival credit card company, Discover, was approved by two regulators, the Federal Reserve and the Office of the Comptroller of the Currency, on Friday.
The merger will create the largest credit card issuer, as well as expand Capital One’s deposit base.
Capital One entered into a definitive agreement to acquire Discover in February 2024 and expects to close the deal on May 18, the company said in a news release.
Through the transition, it would acquire Discover Bank, which was approved by the Office of the Comptroller of the Currency.
« The Board evaluated the application under the statutory factors it is required to consider, including the financial and managerial resources of the companies, the convenience and needs of the communities to be served by the combined organization, and the competitive and financial stability impacts of the proposal », the Fed said in a release.
It is an all-stock deal.
Discover shareholders will receive 1.0192 Capital One shares for each Discover share, or about a 26% premium from Discover’s closing price of $110.
