Post-merger, Capital One shareholders will own 60% of the combined company, while Discover shareholders will hold 40%|Tdorante10|CC BY-SA 4.0
Capital One’s $35.3 billion all-stock acquisition of Discover Financial has officially received approval from the Federal Reserve and the Office of the Comptroller of the Currency (OCC).
Before granting the green light, the Fed reviewed the deal’s financial impact, community benefits, and market competition. The OCC added conditions requiring Capital One to address past regulatory issues tied to Discover.
Under the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share—about a 26% premium over Discover’s previous $110.49 share price.
The deal also includes the acquisition of Discover Bank.
The merger, first announced in February 2024, will strengthen Capital One’s credit card offerings as it will become the largest credit card issuer in the US by loan volume surpassing JPMorgan.
Post-merger, Capital One shareholders will own 60% of the combined company, while Discover shareholders will hold 40%.
The companies expect to close by May 18.