Capital One to acquire Discover consolidating major US credit card companies in $35bn Deal.
In brief:
- The merger marks a significant milestone in the payments industry, promising enhanced value for consumers and reshaping competitive dynamics.
- This all-stock transaction unites two of the nation’s leading credit card issuers, setting the stage for the creation of a robust payments network capable of competing on a global scale.
- The acquisition, expected to close by the end of the year, subject to regulatory approvals and other customary closing conditions, represents a strategic alignment of two companies with complementary strengths.
What does this mean?
“From Capital One’s founding days, we set out to build a payments and banking company powered by modern technology. Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies,” said Richard Fairbank, founder, Chairman and Chief Executive Officer of Capital One. “Through this combination, we’re creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace.”
