Capital One said Thursday (Dec. 19) that its previously announced acquisition of Discover Financial Services has moved another step toward completion by receiving approval from the Office of the Delaware State Bank Commissioner.
The bank received that approval Wednesday (Dec. 18), it said in a Thursday press release.
Subject to the satisfaction of the remaining closing conditions — including approval by the stockholders of Discover and Capital One, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency — Capital One expects the transaction to close in early 2025, according to the release.
Capital One announced its planned acquisition of Discover in February, saying the all-stock transaction, valued at $35.3 billion, will create a global payments platform with 70 million merchant acceptance points in more than 200 countries and territories.
“Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies,” Richard Fairbank, founder, chairman and CEO of Capital One, said in a Feb. 19 press release.
In July, facing criticism from some community groups that fear the planned takeover will reduce services and increase costs for Americans, Capital One said that a combination of Capital One with Discover would provide more benefits to underserved communities than the organizations would offer separately.
The bank also announced a $265 billion community benefits plan that it developed in partnership with four community groups, saying the plan includes elements designed to expand economic opportunity for underserved customers, increase access to products and services for unbanked or underbanked consumers, enable greater access to safe and affordable housing, expand access to credit for small business owners, and support the development of schools, civic centers and healthcare facilities.
In October, it was reported that New York Attorney General Letitia James is investigating the proposed acquisition, saying in a court filing that the deal would have “significant impact” on consumers in New York because Capital One and Discover have combined credit card loans of more than $16 billion in the state and would have a dominant 30% market share among subprime consumers.
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