Core Viewpoint - The Justice Department has indicated it lacks sufficient evidence to block the merger between Capital One and Discover, allowing the Federal Reserve and the Office of the Comptroller of the Currency to proceed with their approval process [1][2]. Group 1: Merger Details - Capital One announced its planned acquisition of Discover in February 2024, aiming to create a global payments platform with 70 million merchant acceptance points across more than 200 countries and territories [4]. - The merger received approval from the Office of the Delaware State Bank Commissioner in December, marking a significant step toward completion [5]. - In February, over 99% of shareholders from both companies voted in favor of the merger, with expectations for the transaction to close early this year, pending regulatory approvals [6]. Group 2: Regulatory Considerations - The Justice Department's antitrust division, led by Gail Slater, determined there was insufficient evidence to challenge the merger, despite earlier concerns from Biden administration officials regarding potential competitive harm [2][3]. - The review process under the Biden administration considered various factors beyond typical competitive assessments, including impacts on customer segments, fees, interest rates, bank locations, product variety, network effects, interoperability, and customer service [3].
Report: Justice Department Will Not Block Capital One Acquisition of Discover