Capital One-Discover Merger Gets Final Green Light, Creating a New Credit Card Powerhouse
Hey Digital Banking Fanatic!
After a thorough 14-month review, Capital One has secured all necessary regulatory approvals to acquire Discover Financial Services in a $35.3 billion all-stock deal. When the transaction closes on May 18, 2025, it will create the largest credit card issuer in the United States. Both the Federal Reserve and the Office of the Comptroller of the Currency (OCC) have given their approval, though the OCC has made its approval contingent on Discover resolving some outstanding enforcement actions and customer remediation issues.
Richard Fairbank, the Founder, Chairman, and CEO of Capital One, expressed his enthusiasm: "This is an exciting moment for Capital One and Discover. We understand the critical importance of a strong and competitive banking system to our customers and our economy, and we appreciate the thoughtful and diligent engagement of our regulators as they thoroughly reviewed this deal."
Discover's Interim CEO, Michael Shepherd, shared similar sentiments: "The combination of our two great companies will increase competition in payment networks, offer a wider range of products to our customers, increase our resources devoted to innovation and security, and bring meaningful community benefits."
Shareholders from both companies have shown strong support for the merger. As part of the deal, Capital One has committed to a $265 billion, five-year community benefits plan aimed at fostering economic opportunity across the country. Customers can breathe easy knowing that no immediate changes are expected for their accounts once the merger is complete.
Read all the other Digital Banking industry news below, and I'll be back with more tomorrow!
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