Capital One’s $35 billion acquisition of Discover Financial has cleared its final regulatory hurdle, with U.S. regulators — including the Federal Reserve — granting formal approval for the deal to proceed. The merger is now slated to close on May 18, marking one of the largest consolidations in the U.S. financial services sector in recent years.
This landmark deal, first announced in early 2024, will combine two major players in the U.S. credit card and consumer banking markets, creating a powerhouse with greater reach across lending, payments, and digital banking. Upon completion, Capital One is expected to become the largest U.S. credit card issuer by loan volume, surpassing JPMorgan Chase.
The Federal Reserve’s approval, disclosed in a brief statement Friday, follows a period of public comment and regulatory scrutiny over potential impacts on competition and consumer access. Despite some concerns raised by advocacy groups and lawmakers over market concentration, the Fed concluded the merger would not pose a significant threat to financial stability or competition in key markets.
As part of the merger, Discover’s payment network — one of only four major U.S. card networks — will be integrated into Capital One’s operations, potentially offering the combined entity a competitive edge in controlling more of the end-to-end transaction process.
Capital One CEO Richard Fairbank said earlier that the deal will allow the company to “compete more directly with the largest payments and tech platforms” and create long-term value for consumers.
For more details, see the Federal Reserve’s official statement on the transaction here (if available).
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Capital One Center, Tysons, VA on Wikimedia by Duane Lempke
