Capital One is buying Discover in a $35.3 billion deal

Capital One is set to acquire Discover Financial Services in an all-stock deal worth $35.3 billion. This move will provide Capital One with a competitive advantage in the credit card market. As part of the agreement, Discover shareholders will receive over one share of Capital One for each Discover share they own, offering them a premium of nearly 27% based on Friday’s closing share price. If the deal goes through, Capital One shareholders will hold a majority stake of 60% in the merged company, while Discover shareholders will own the remaining 40%. The deal is expected to be completed in late 2024 or early 2025.