Capital One’s massive $35.3bn deal to acquire Discover Financial emerges.

February 20, 2024
1 min read


  • Capital One to acquire Discover Financial Services for $35.3bn
  • Deal creates the biggest credit card company in the US

Banking giant Capital One has announced plans to acquire Discover Financial Services for $35.3bn, creating the biggest credit card company in the United States. The deal, which would see Capital One become the biggest US credit card company by loan volume, is described as an “incredible opportunity” by Capital One’s CEO Richard Fairbank. The acquisition is expected to bring together two strong brands with enhanced growth potential and value for shareholders.

Under the proposed takeover, Discover shareholders would receive a premium of about 27 percent compared with Discover’s closing price Friday. The announcement of the deal has drawn pushback from consumer rights advocates, who believe it may raise concerns among regulators like the Federal Trade Commission and Consumer Financial Protection Bureau. US President Joe Biden’s administration has emphasized tougher antitrust enforcement, signaling a potential challenge for the acquisition.

The deal between Capital One and Discover is seen as a strategic move to leverage customer base, technology, and data to drive sales and offer better deals for consumers and small businesses. With Americans’ card balances reaching record highs, the credit card business remains a lucrative sector for US issuers. The proposed acquisition signals a significant consolidation in the banking industry and could set the stage for further regulatory scrutiny and competition in the market.

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