Capital One Financial Corporation (NYSE: COF) and Discover Financial Services (NYSE: DFS) have received final regulatory approvals for Capital One’s acquisition of Discover. The transaction, expected to close on May 18, 2025, has received approval from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.
Upon completion of the transaction, Capital One will begin implementing its historic, five-year Community Benefits Plan (CBP), aiming to mobilize over $265 billion in lending, investment, and services to advance economic opportunity and financial well-being across America.
The combination of the two companies is expected to increase competition in payment networks, offer a wider range of products to customers, increase resources devoted to innovation and security, and bring meaningful community benefits.
There will 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.
The approval follows the endorsement of the transaction by the Delaware State Bank Commissioner in December 2024 and by shareholders of more than 99 percent of each company’s shares voting in February of this year.
Richard Fairbank, founder, chairman, and CEO of Capital One, expressed gratitude to the thousands of associates across both companies who have worked tirelessly to achieve this significant milestone. He emphasized the profound sense of possibility and responsibility to deliver for customers, associates, shareholders, and communities.
Moreover, Michael Shepherd, interim CEO and president of Discover, highlighted the benefits of the combination, including increased competition in payment networks, a wider range of products for customers, and a focus on innovation and security.
The acquisition is poised to bring about significant changes in the banking and financial services landscape, with both companies aiming to leverage their combined resources to benefit their customers and communities. Following these announcements, the company's shares moved 2.1%, and are now trading at a price of $159.63. Check out the company's full 8-K submission here.
