Why Capital One plans to buy Discover in a megamerger of credit giants

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 ...