Two of the US’s largest credit card companies are set to merge in a deal to create a giant financial powerhouse worth around US$35bn. Capital One has offered to buy Discover Financial Services (NYSE:DFS) in an all-share transaction to form the sixth-largest US bank by assets and a rival to JPMorgan Chase and Citigroup. Combined, the company will also be number one in the highly concentrated US credit card industry, Visa and Mastercard dominate the credit card landscape worldwide but getting to a scale where ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: According to Capital One the deal to acquire Discover is expected to close in late 2024 or early 2025. US banking giant Capital One announced Monday it will acquire financial services company Discover in a $35.3 billion all-stock deal combining two of America's major credit card firms. Under the deal, Discover shareholders wil ...

Capital One Financial Corp. intends to purchase Discover Financial Services in an all-stock deal that one analyst notes would “effectively create the largest card issuer in the U.S.” Capital One COF, +0.64% announced the deal late Monday after various outlets reported that a transaction was near. Discover DFS, -0.21% shareholders would receive 1.0192 Capital One shares for each Discover share, which would represent a more than 26% premium to Discover’s Friday close of $110.49.The companies said the transact ...

Key TakeawaysCapital One shares will come into focus Tuesday after the credit services giant announced a $35.3 billion all-stock acquisition of smaller rival Discover Financial Services.Under the terms of the deal, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a 26.6% premium to Discover's Friday $110.49 closing price.Capital One expects the merger to generate expense and network synergies of $1.5 billion and $1.2 billion, respectively, by 2027.COF shares ...

Key TakeawaysCapital One announced an agreement to acquire Discover Financial for $35.3 billion in an all-stock deal that would create a payments giant serving over 100 million customers.The purchase price represents a 26.6% premium to Discover's closing share price on Friday.At the close of the transaction, Capital One shareholders will own about 60% of the combined company.Capital One said the acquisition will enable the combined company to build a payments network that competes with the largest payments ...

NEW YORK/WASHINGTON — Capital One, a US consumer lender backed by Warren Buffett, said on Monday that it will acquire credit card issuer Discover Financial Services in an all-stock transaction valued at $35.3 billion.The tie-up, which will combine two of the largest US credit card companies, aims at building “a payments network that can compete with the largest payments networks and payments companies,” Richard Fairbank, chairman and CEO of Capital One, said in a statement.Visa, Mastercard, and American Ex ...

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 Under the terms of the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share, representing a premium of 26.6% based on Discover's closing price of $110.49 on February 16, 2024. Transaction is 100% stock consideration. Creates a global payments platform at scale, with 70 million merchant acceptance points in more than 200 countries and territories   Positions the combined company to compete with the largest payments companies and deliver enhanced value to a franchis ...

Capital One Plans to Buy Discover in All-Stock Deal ...

ToplineCapital One is considering acquiring Discover Financial, multiple outlets reported Monday, a move that would combine two of the nation’s largest credit card companies to create the single biggest credit card firm by volume of loans.The acquisition would reportedly be Capital One’s largest deal to date. Getty Images Key FactsThe Wall Street Journal reported a deal could be announced as early as Tuesday, citing sources familiar with the matter, after Bloomberg reported earlier Capital One was exploring ...