Capital One Approved to Acquire Discover Financial

Capital One has received approval from the Office of the Delaware State Bank Commissioner for its $35.3 billion acquisition of Discover Financial Services. This merger, initially announced in February 2024, is expected to create the sixth largest bank in the U.S. and the largest credit card issuer by outstanding loans. Shareholders of Discover will receive 1.0192 Capital One shares for each share held, with Capital One shareholders owning approximately 60% of the combined company. The merger is set to close in early 2025, pending approvals from both companies' shareholders and federal regulators. Additionally, Capital One has proposed a $265 billion community benefits plan aimed at enhancing economic opportunities, especially for underserved communities, amid concerns about potential negative impacts on competition. An antitrust investigation has also been initiated by New York Attorney General Letitia James to assess competition implications as the companies hold significant credit card loans in the state.