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Key TakeawaysCapital One's $35.3 billion acquisition of Discover Financial stands to shake up the financial services industry, making the combined company a major player in credit cards.The company could displace JPMorgan Chase as the dominant credit card lender, based on current card loan data.With a boost in investment from Capital One, Discover could better take on Visa and Mastercard, which are the dominant credit card brands in the U.S.The deal, however, will face regulatory hurdles.The proposed $35.3 ...

Capital One Financial's $35.3 billion deal for Discover Financial would create new competition for payments behemoths Visa and Mastercard, potentially helping smoothen the path for regulatory approval, analysts said. The all-stock deal announced on Monday would give Capital One access to Discover's network of payments processing and settlement services, allowing it to cut its reliance on Visa and Mastercard, which have come under fire for their fees.While legal experts expect the deal - the biggest in the g ...

Senator Elizabeth Warren has urged regulators to block Capital One’s $35bn takeover of Discover Financial, arguing that combining two of the US’s largest credit card companies would harm consumers and challenge financial stability.The blockbuster deal would inevitably lead to higher costs and fees for cardholders, according to the leftwing senator.Richard Fairbank, chairman and chief executive of Capital One, has claimed the planned acquisition amounts to “a singular opportunity to bring together two very s ...

Capital One Financial (COF 0.71%) shocked the financial industry by announcing that it has agreed to acquire fellow credit card-focused bank Discover Financial Services (DFS 14.78%) in an all-stock transaction.This deal combines two of the largest players in the credit card industry and creates some interesting possibilities for efficiency as well as long-term growth. Here's a rundown of what investors should know about the acquisition and what it could mean over the long run.Details of the dealAs mentioned ...

Tuesday, February 20th, 2024We begin a new holiday-shortened trading week today with pre-market futures slightly down overall. Traders and investors continue to come to grips with what these higher-than-expected CPI and PPI numbers from last week mean, if they in fact mean anything (they could be a temporary seasonal wrinkle to be ironed out over time). The Dow, S&P 500 and Nasdaq are all trading -0.3% or thereabout at this hour. The last week of trading has presented similar challenges, though the S&P rema ...

Capital One (COF) has inked an agreement to acquire Discover Financial Services (DFS) in an all-stock transaction valued at $35.3 billion. This strategic move is poised to reshape the landscape of the credit card industry, create a behemoth in the industry and unlock substantial value for shareholders while raising questions about regulatory scrutiny and competitive dynamics within the market.In pre-market trading, shares of COF are down 4.5%, while DFS has jumped 13.5%.The deal, expected to close in late 2 ...

In a move set to reshape the landscape of the U.S. financial sector, Capital One (COF) , backed by Warren Buffett, announces its plans to acquire Discover Financial Services. The all-stock transaction, valued at $35.3 billion, aims to establish a global payment giant. The deal, if approved by regulators, would create the sixth-largest U.S. bank by assets and a U.S. credit card behemoth that would compete with rivals JPMorgan Chase and Citigroup, per Reuters.Enhancing Competitiveness in Global PaymentsDespit ...

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 ...