Capital One gets DOJ support for Discover acquisition - NYT

3rd April 2025 18:21

(Alliance News) - Capital One has moved closer to its acquisition of payment services provider Discover, the New York Times reported on Thursday.

In February 2024, the McLean, Virginia-based bank holding company and Credit Card provider Capital One had announced a USD35 billion merger with Riverwoods, Illinois-based financial services company Discover.

Capital One has USD479 billion in assets, making it the ninth largest US bank. If approved, it would gain Discover's network of 305 million cardholders.

On Thursday, the Times said the US Department of Justice doesn't see sufficient competition concerns to block the deal, though it had expressed such concerns during the Biden administration.

The Times said both Justice Department and Capital One spokespersons declined to comment, though a Capital spokesman said the deal "complies with the Bank Merger's Act's legal requirement and we remain well-positioned to gain approval".

Importantly, the DOJ doesn't have the authority to block such deals, that falls on the Federal Reserve and the Office of the Comptroller of the Currency, but DOJ's determination holds significant sway, as it can sue to block M&A.

Company shareholders approved the deal went it was announced last year.

Capital One shares were down 8.5% at USD166.68 on Thursday afternoon in New York

Discover shares were down 7.0% at USD163.49.

By Aidan Lane, Alliance News reporter

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