Capital One set to buy Discover for $35 billion

Capital One Financial announced its acquisition of Discover Financial Services for $35 billion in an all-stock deal, uniting two major credit card companies and potentially disrupting the payments industry. Discover shareholders will receive Capital One shares valued at nearly $140 per share, representing a significant premium. The merger brings together two leading credit card providers catering to similar customer bases and aims to create a competitive payments network. Capital One CEO Richard Fairbank sees the acquisition as an opportunity to build a robust payments network. The move reflects Capital One’s strategy to capitalize on increasing credit card usage and balances, despite rising defaults and regulatory challenges. While the deal may face regulatory scrutiny and antitrust concerns, consumer groups will push for assurances of its benefits to consumers.