visimoney
TLDR:
- Capital One is considering acquiring Discover Financial Services, potentially creating the largest US credit card company.
- The deal may be announced soon, but there is no certainty it will happen.
According to Bloomberg News, Capital One Financial Corp. is in talks to acquire credit card lender Discover Financial Services in what could be one of the largest deals globally this year. Capital One, based in McLean, Virginia, is looking to work with advisers and potentially make an announcement as soon as this week. The acquisition would bring together two well-known consumer-finance brands and create the largest US credit card company by loan volume, surpassing competitors like JPMorgan Chase & Co. and Citigroup Inc.
While Capital One is known for catering to subprime consumers, it has been expanding its reach to attract more premium customers in recent years. On the other hand, Discover has historically focused on prime customers with better credit ratings. However, Discover saw a major decline in its shares last year, leading to the resignation of its former CEO. The company is currently looking for a buyer for its student loan business.
If the acquisition goes through, it would mark a significant move in the credit card industry, potentially reshaping the competitive landscape. Despite ongoing deliberations, there is no guarantee that a deal will be finalized. Both Capital One and Discover have not commented on the potential acquisition.
