visimoney
TLDR:
- Capital One is reportedly set to acquire Discover Financial in an all-stock deal.
- The deal is expected to value Discover at more than $28 billion.
Capital One Financial Corp. is reportedly set to acquire Discover Financial Services in an all-stock deal that would unite two major credit card providers in the U.S. The deal, expected to be valued at a premium to Discover’s current market capitalization of $27.6 billion, could be announced as soon as Tuesday. Capital One is expected to maintain the Discover brand and transition some of its cards to the Discover network.
The acquisition would allow Capital One to expand its credit card customer base significantly and grow its consumer deposits through Discover’s online banking arm. Discover, which has faced challenges such as increased bad loan provisions and regulatory scrutiny, may find stability and growth opportunities under Capital One’s ownership.
While the deal is expected to offer strategic benefits for both companies, the financial markets are eagerly awaiting the official announcement and details of the acquisition. Investors will be closely watching how the merger unfolds and impacts the overall credit card industry.
