Capital One to buy Discover in $35 billion deal

Original article here.

Capital One Financial said it will purchase Discover Financial Services in a $35.3 billion deal that will combine two of the nation’s largest credit card issuers.

The transaction, which was announced Monday, will trade Discover shares for Capital One shares. This will massively benefit Discover investors, whose shares were worth $110.49 at the close of the market Friday, as they will be receiving Capital One Shares that were worth more than $137 at market close, per Google Finance.

“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,” Richard Fairbank, the founder, chairman and CEO of Capital One said.

Capital One is the fourth largest credit card issuer, according to financial outlet WalletHub, citing 2022 data, while Discover is the sixth largest.

Discover works with 70 million merchants across more than 200 different countries and territories, and the acquisition is “a key foundation in Capital One’s quest to build a global payments company,” per the credit card company.

By PatriotmanPublished On: February 20, 2024Categories: Uncategorized1 Comment

About the Author: Patriotman

Patriotman currently ekes out a survivalist lifestyle in a suburban northeastern state as best as he can. He has varied experience in political science, public policy, biological sciences, and higher education. Proudly Catholic and an Eagle Scout, he has no military experience and thus offers a relatable perspective for the average suburban prepper who is preparing for troubled times on the horizon with less than ideal teams and in less than ideal locations. Brushbeater Store Page: http://bit.ly/BrushbeaterStore

One Comment

Truth in Tension February 20, 2024 at 10:03

The consolidation of giant corporations continues. These consolidations do in fact reduce free market competition which in turn result in higher prices to the end consumer. With a sound money system this type of malinvestment would not be possible. Who is $ John Galt?