Capital One , to Acquire Discover.
Capital One Financial will buy Discover Financial Services in an all-stock deal
worth $35.3 billion, CNBC reports. .
The deal is expected to close at the
end of 2024 or beginning of 2025.
Once the acquisition is finalized, Capital One and Discover shareholders would own 60% and 40% of the combined company, respectively, CNBC reports. .
The merger would allow Capital One to increase
its credit card offerings and deposit base.
Discover has done a better job of
bringing in a lot of deposits and [has]
access to a lot of institutions to run the
debit card network and provide service. , David Schiff, West Monroe’s head of
consumer retail and banking, via CNBC.
So it gives them a lot of
deposit gathering ability,
which particularly in the current
market is enormously important, David Schiff, West Monroe’s head of
consumer retail and banking, via CNBC.
The company intends to keep
the Discover brand in place.
The financial industry hasn't seen many acquisitions that parallel the Capital One-Discover merger, CNBC reports.
The deal will likely affect similar "merger activity within the sector," according to David Schiff,
West Monroe’s head of consumer retail and banking.
It’s a good example of the risk we’re
seeing in the market, where the competing
interests from regulators for increased
control and rigor balance against the
competitive demands that are being made
quite clearly, in terms of the overall market, David Schiff, West Monroe’s head of
consumer retail and banking, via CNBC