By The Financial District
Feb 201 min
Capital One Financial Corporation announced its acquisition of Discover Financial Services for $35 billion, a move that consolidates two of the largest lenders and credit card issuers in the United States, as reported by the Associated Press (AP).
The deal stipulates that Discover Financial shareholders will receive Capital One shares valued at approximately $140 each.
Under the terms of the deal, Discover Financial shareholders will receive Capital One shares valued at approximately $140 each.
This acquisition aligns with the ongoing trend of increased credit card usage among Americans, with credit card balances reaching $1.13 trillion in the fourth quarter of 2023. Both companies have seen growth in their credit card businesses, reflecting consumers' heightened reliance on credit.