Capital One acquires Discover Financial Services for $35 billion – Kommersant
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Some of the largest banking groups in the American market, Capital One and Discover Financial Services, announced about the merger.
Under the terms of the deal, Discover shareholders will receive 1.0192 Capital One shares in exchange for each share they own. Thus, the premium to the Discover share price at the close of trading on February 16 will be 26.6%. The deal will be paid entirely in stock and is valued at $35.3 billion. Once the deal closes, Capital One shareholders will own approximately 60% of the combined company, with current Discover shareholders owning the remaining 40%.
Capital One and Discover are two of the largest bank card issuers in the United States. At the same time, Discover has its own payment system, which is one of the few competitors of Visa and MasterCard. After the deal closes, Capital One intends to transfer some of its cards to the Discover system, while the majority of customers will continue to be serviced by Visa and MasterCard.
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