Capital One Financial Corporation and Discover Financial Services have announced that they received approval from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency for the proposed acquisition of Discover by Capital One. These are the final regulatory approvals required, following approval of the transaction by the Delaware State Bank Commissioner in December 2024, and by shareholders of more than 99% of each company’s shares voting in February of this year.
“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 over the past 14 months,” said Richard Fairbank, founder, chairman, and CEO of Capital One, said in a statement on April 18. “I am grateful to the thousands of associates across Capital One and Discover who have worked tirelessly to help us achieve this significant milestone. We look forward to bringing these two great companies together with a profound sense of possibility and responsibility to deliver for our customers, associates, shareholders, and communities.”
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The transaction is expected to close on May 18, subject to the satisfaction of customary closing conditions. “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,” said Michael Shepherd, Interim CEO and president of Discover.
Following the acquisition, Capital One would be the eighth largest U.S. bank. The combined U.S. credit card firm would compete with JPMorgan Chase, Citigroup and others. There would be no immediate changes to Capital One and Discover customer accounts and relationships now or in the period immediately following the closing of the transaction. Capital One will provide customers with comprehensive information regarding relevant conversion activities well in advance of any future change.