Capital One To Acquire Discover Financial ($35 Billion Deal Confirmed)

Update 4/18/25: Capital One has received the green light from regulators according to WSJ.

Update 4/4/25: It cleared DoJ scrutiny, per Reuters

Update 3/18/25: Looks like this will be blocked by DoJ.

DOJ Staff Finds Deal Would Be Anticompetitive in Subprime Sector DOJ staff has determined that Capital One’s proposed $35.3 billion acquisition of Discover Financial would harm competition in the subprime sector, sources familiar with the matter said.

Update 2/11/25: Capital One & Discover have agreed to an extension until May 19, 2025 due to ongoing litigation and need to secure regulatory approvals.

Update 12/22/24: Capital One has received approval by the Delaware State Bank commissioner for the acquisition of Discover, they anticipate fully completing the acquisition by early 2025

Update 10/25/24: Deal won’t close this year.

Capital One will buy Discover Financial Services, WSJ reports. The bank will keep the Discover brand. The massive merger will combine two of the largest credit card issuers in the US.

Now, what’s on my mind: will Discover start doing 3-pulls for credit card applications?   In all likelihood, it will be many years until there are any changes to how either bank operates. It remains to be seen if this will affect credit card or bank signup bonuses in the longer term.