Capital One swoops in to buy Discover Financial Services for $35.3 billion

February 20, 2024
1 min read


  • Capital One to acquire Discover Financial Services in a $35.3 billion deal.
  • The merger aims to establish a competitive payments network in the US.

In a move to create a strong presence in the US credit card market, Capital One announced plans to acquire Discover Financial Services in a $35.3 billion all-stock deal. The merger aims to position Capital One alongside major payment networks like Visa and Mastercard. Discover shareholders will receive 1.0192 Capital One shares for each Discover share, with Capital One shareholders owning 60% of the combined company.

The deal, subject to regulatory approval, is expected to face scrutiny due to concerns about competition in the credit card market. Democratic progressives have historically opposed bank consolidation, citing systemic risks and consumer harm. Discover and Capital One reported declines in profits in the fourth quarter, with Discover facing regulatory challenges over credit card account classification.

Upon completion of the merger, the combined entity is poised to become the sixth-largest US bank, holding assets worth around $600 billion. Despite potential regulatory hurdles, the deal marks a significant milestone in the US financial services sector and highlights the ongoing trend of consolidation and competition in the industry.

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