Regulatory Approval Granted for Capital One's Acquisition of Discover

By Tamara Parker • Sunday, April 20 09:57 • Permanent Link

Capital One Financial Corporation (NYSE: COF) and Discover Financial Services (NYSE: DFS) have announced that they have received final regulatory approvals for Capital One's proposed acquisition of Discover. The board of governors of the Federal Reserve System and the Office of the Comptroller of the Currency have given their approval for this transaction.

The transaction, which was also approved 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, is expected to close on May 18, 2025, subject to the satisfaction of customary closing conditions.

Capital One's founder, chairman, and CEO, Richard Fairbank, expressed gratitude to the thousands of associates across both companies who have worked tirelessly to achieve this significant milestone. He emphasized the importance of a strong and competitive banking system to customers and the economy and looks forward to bringing the two companies together to deliver for customers, associates, shareholders, and communities.

Discover's interim CEO and president, Michael Shepherd, highlighted that the combination of the two companies will 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.

It is worth noting that upon closing, Capital One will begin the implementation of its historic, five-year Community Benefits Plan (CBP), mobilizing more than $265 billion in lending, investment, and services to advance economic opportunity and financial well-being across America.

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. Customers will continue to be served through their respective Capital One and Discover customer communications channels until further notice. The market has reacted to these announcements by moving the company's shares 2.1% to a price of $159.63. For more information, read the company's full 8-K submission here.

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