Capital One Financial is poised to acquire Discover Financial Services, as reported by The Wall Street Journal. The deal is anticipated to be disclosed on Tuesday, according to sources cited by the outlet.
The acquisition will be structured as an all-stock deal, with Capital One, already integrated with Visa and Mastercard networks, intending to maintain the Discover brand, as detailed by The Wall Street Journal.
This development follows a Bloomberg News report on Monday, indicating Capital One’s contemplation of an acquisition.
Upon the merger of these two entities, both prominent credit card issuers in the U.S., Capital One’s credit card offerings are expected to undergo expansion.
Last June, the company acquired digital concierge service Velocity Black, augmenting its portfolio with a premium credit card and luxury market platform.
Discover’s shares have experienced a 1.7% decline year-to-date, reflecting a market capitalization of $27.63 billion. Meanwhile, Capital One boasts a market capitalization of $52.2 billion, with its shares appreciating by 4.6% in 2024.
The potential merger between Capital One and Discover represents one of the most significant deals announced thus far this year.
In January, Synopsys revealed its $35 billion acquisition of Ansys, while on February 12, Diamondback Energy announced its $26 billion deal to acquire privately held oil and gas producer Endeavor Energy.
