Capital One and Discover, known for their focus on the nonprime market, are aiming to merge in 2025. Dec. 20, 2024, at 2:22 p.m. The merger is still awaiting approval, but the odds that it goes through seem higher after the November election of former President Donald Trump.
Hurd expects Capital One to continue operating both brands somewhat autonomously for some time. "Capital One probably won't alienate Discover's large customer base by discontinuing the Discover card brand," he said. Hurd does expect small changes to products after the acquisition.
Capital One anticipates that the transaction will close in early 2025, subject to the satisfaction of the remaining closing conditions set forth in the merger agreement between the companies, including approval by the stockholders of Discover and Capital One and approval by the Board of Governors of the Federal Reserve ...
In February 2024, Capital One agreed to buy Discover Financial Services for more than $35 billion, in a deal that would unite two of the largest U.S. credit-card companies. The proposed acquisition comes at a time when consumers are shifting more of their payments from cash to credit cards.
Capital One plans to keep Discover's brand separate. If you have bank accounts at Capital One or Discover® Bank, here's what you might expect from this deal.
Discover Savings Account Security
This means that your money is safe in case of a bank failure for up to $250,000 per person, per account type.
Capital One (NYSE: COF) announced last week that it had received approval from the Office of the Delaware State Bank Commissioner on Wednesday to acquire Discover Financial. This is seen as one of the key regulatory hurdles in the all-stock merger valued at $35.3 billion which was announced back in February.
Discover and Capital One are fairly similar when it comes to their rates, fees, and product offerings. However, Discover Bank is the better choice for those who want to earn rewards on their checking account spending and/or are interested in opening a money market account.
As a part of the acquisition, Capital One released a $265 billion, five-year Community Benefits Plan which highlighted company-based support and investments in “critical economic priorities including housing affordability, no-fee banking access and small business growth.”
Merchants Pay More
It may come as no surprise that the reason many merchants opt-out of accepting Discover cards (and American Express, for that matter) is about the bottom line. The Discover card is also like American Express in that they both charge a bit more to store owners to accept their cards.
Capital One's acquisition of Discover, valued at over $35 billion, will make the combined company the largest card issuer in the U.S. The deal will position Capital One with approximately $250 billion in card balances, reflecting a 22% increase in market share.
Richard Fairbank is the founder, Chairman, and CEO of Capital One. He is the company's largest individual shareholder, with a 1.11% stake in the company. The Vanguard Group, BlackRock, and Dodge & Cox are the largest institutional shareholders, with a combined 24.85% stake in the company.
“If you have either a Capital One or a Discover card (or both), you will still be able to use them as you used them yesterday.” It still needs to clear regulatory rules, and the shareholders of both companies would need to approve the merger.
Yes, if you have a Discover balance transfer offer available, you can transfer a balance from a Capital One credit card.
COF boasts a Momentum Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Capital One has seen some interesting price action recently; the stock is down 3.9% over the past one week and up 16.5% over the past four weeks. And in the last one-year period, COF has gained 70.7%.
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 ...
At Discover Bank, you'll still be able to deposit cash at Walmart locations, but it might not be as convenient as heading to a branch from a national brick-and-mortar bank. Your Discover Bank account is insured by the FDIC for up to $250,000 or up to $500,000 for a joint account.
Capital One plans to acquire Discover. Here's what it would mean for credit card and banking customers. Two of the biggest names in banking — Capital One and Discover — made headlines recently after Capital One announced its plans to acquire Discover in a transaction valued at $35.3 billion.
data. The bulk of its deposit growth has come via Capital One 360, its digital-only arm that it acquired from ING Direct in 2012. Paul Schaus, the CEO of the consulting firm CCG Catalyst in Phoenix, said that Capital One has been able to sharply reduce its branch count because its “digital strategy is successful.”
Capital One's recently announced $35.3 billion acquisition of Discover Financial isn't just about getting bigger — gaining "scale" in Wall Street-speak — it's a bid to protect itself against a rising tide of fintech and regulatory threats.
Discover is set to pay $1.2 billion to settle class-action lawsuit claims related to a card misclassification issue disclosed last year, Discover said in a regulatory filing last week. Claims were filed on behalf of merchants and merchant acquirers affected by the misclassification.
Capital One's threat of distress is under 6% at the present time. It has tiny chance of undergoing some form of financial crunch in the near future.