Sign at the entrance to the Manhattan Capital 1 Bank Branch.
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Regulators officially approved a financial application announced Friday to acquire discovery financial services in a $35.3 billion share transaction, which was officially approved by the Federal Reserve and the Secretary of Currency.
“The board evaluated applications under legal factors that need to be considered, such as the financial and management resources of the company, as well as the convenience and needs of the communities in which the combined organization serves.
Capital One was the first to announce that it had signed a decisive agreement to win Discover in February 2024. You also indirectly obtain Discover Bank through transactions.
Under the agreement, Discove shareholders will receive a premium of about 26% from 1.0192 Capital One share per Discows Share or at that time Discove’s $110.49 closing price, Capital One said in the release.
Capital One and Discover are one of the largest credit card issuers in the United States, and the merger will expand Capital One’s deposit base and its credit card offerings.
In a joint statement, Capital One and Discover said they hope to close the transaction on May 18th.
After the transaction closes, Capital One shareholders own 60% of the total company, and Discover shareholders own 40%, according to a February 2024 release.
Watch: Capital’s Jamie Dimon’s $35.3 billion discovery acquisition: “Let them compete”
