Capital One to acquire Discover for $35.3 billion in all-stock deal

[bernard]

Capital One is purchasing Discover Financial Services for $35.3 billion, the banking giant announced Monday — an all-stock deal that brings together two of the country’s largest credit card companies and is likely to face close regulatory scrutiny.

The two financial giants combined would become the biggest credit card lender in the nation, according to data compiled by Bloomberg Intelligence. Discover, based in Riverwoods, Ill., has a market value of nearly $28 billion, while McLean, Va.-based Capital One is valued at about $52 billion.

Under the deal’s terms, Discover shareholders will receive a little over one share of Capital One for every Discover share they own — a 26.6 percent premium from Discover’s closing share price of $110.49 on Friday.

Once the deal closes, current Capital One shareholders will own a 60 percent stake in the combined company, while Discover shareholders will own the remaining 40 percent.

https://www.washingtonpost.com/business/2024/02/19/capital-one-discover-merger/

 

[Olde Hornet]

It will be interesting to see if they Feds allow this to go through.

 

[Stillabrave]

It will be interesting to see if they Feds allow this to go through.

I hope it does not go through. I consider Discover one of the better credit cards. It is the primary card I use and I have never had any issues with the card. A little History. Discover was started by the old Sears Roebuck Company.

 

[Olde Hornet]

Sears should have been the Amazon, but lack of leadership and vision doomed the company.

 

[pbla]

I have Discover now...I love their credit alerts.

 

[Justin]

This is going to be interesting. Wonder what the FTC and DOJ will say about it.