Capital One Receives Fed Approval for Discover Acquisition
Update (Apr 19, 2025) – WSJ reports that Capital One’s $35 billion acquisition of Discover got the greenlight from bank regulators on Friday, who noted the approval was conditional on the resolution of pending enforcement actions against Discover. The deal is expected to close in May.
The Federal Reserve said in a statement that as a condition of its approval, Capital One agreed to comply with its consent order with Discover, in which it assessed a fine of $100 million for overcharging certain interchange fees from 2007 through 2023. Fed actions are being taken in coordination with the Federal Deposit Insurance Corp., which also on Friday issued orders against Discover. One ordered it to pay restitution of $1.23 billion to affected merchants and other intermediaries.
Capital One has received approval from the Office of the Delaware State Bank Commissioner on December 18, 2024, to complete its previously announced acquisition of Discover Financial Services and its subsidiary bank, Discover Bank, which is a Delaware-chartered bank.
This moves the merger one step closer to completion, which Capital One says it will happen in early 2025, subject to the satisfaction of the remaining closing conditions set forth in the merger agreement between the companies. That includes approval by the stockholders of Discover and Capital One and approval by the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.
Capital One first announced its proposed acquisition of Discover in February 2024. You can find more information on Capital One’s agreement to acquire Discover Financial Services at www.capitalonediscover.com.
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