19.05.2025 15:20
Capital One has made a significant merger in the U.S. banking sector by acquiring Discover for $35.3 billion. This merger aims to create a new balance in the credit card market while offering customers a broader range of services.
A historic merger has taken place in the U.S. banking sector: Capital One has acquired Discover Financial Services for $35.3 billion in stock. This massive deal has positioned Capital One as the sixth-largest bank in the U.S. by asset size and has created a new balance in the credit card market.
HUGE MERGER: CAPITAL ONE ACQUIRES DISCOVER
By acquiring Discover for $35.3 billion in stock, Capital One has become one of the largest credit card issuers in the U.S. Under the agreement, Discover shareholders will receive 1.0192 shares of Capital One for each share they own. This merger will expand Capital One's customer base while strengthening Discover with its payment network.
STRUCTURE AND GOALS OF THE NEW COMPANY
The new company formed after the merger will be approximately 60% owned by Capital One shareholders and 40% by Discover shareholders. Capital One CEO Richard Fairbank stated that this merger aims to create a payment network capable of competing with giants like Visa and Mastercard.
REGULATORY APPROVALS AND CRITICISMS
The agreement has received approval from the U.S. Department of Justice and other regulatory bodies. However, some Democratic lawmakers have expressed concerns that the merger could reduce competition and negatively impact consumer rights.
WHAT DOES IT MEAN FOR CUSTOMERS?
For now, there will be no changes for Capital One and Discover customers. However, in the long term, the merger is expected to offer advantages such as a wider range of products, more ATM access, and branch availability.