Capital One Gets the Greenlight to Move Forward With Discover Acquisition

Bloomberg/Getty Images Capital One cleared the final hurdle in acquiring Discover, which would merge the two US credit card giants. Federal regulators approved the deal, which is expected to close on May 18, Capital One announced Friday in a press release. "The combination of our two great companies will increase competition in payment networks [and] offer a wider range of products to our customers," Michael Shepherd, interim CEO and president of Discover, said in the press release. Capital One announced its plans to purchase Discover in February 2024 for $35.3 billion. Some experts have argued that the merger isn't good news for consumers since Capital One is the third-largest credit card company, and Discover is one of only four credit card networks. That could mean less competition among credit card companies, leading to higher prices and fees. On the other hand, the deal could give Discover the additional backing it needs to compete with Visa and Mastercard, which some policyma ... Read full article.