Sign the entrance to a capital forest bank branch in Manhattan.
Eric McGregor | Lightrocket | Getty images
Capital One Financial application has been officially approved by the Comptroller Office of the Federal Reserve and Currency to acquire Discover Financial Services in the $ 35.3 billion all-stock deal, the regulators announced on Friday.
“The board evaluated the application under statutory factors, which requires the financial and managerial resources of the companies, the convenience and requirements of communities to be served by the joint organization and the proposal of the proposal,” Fed said in a release, “Fed said in a release.
Capital One first announced that it had entered a certain agreement in February 2024 to acquire the Discover. This will indirectly acquire the Discover Bank through transaction.
Under the agreement, the Discover shareholders will receive about 26% premium from the closing price of 1.0192 capital forest share or discover for each discover share, at that time the Capital One said in a release.
Capital Forest and Discover are among the largest credit card issuers in the US, and the merger will expand the deposit base of Capital One and the offerings of its credit card.
As per the release of February 2024, after the deal closure, the capital forest shareholder will organize a 60% joint company, while the shareholders’ discovery is 40%.
In a joint statement, Capital One and Discover stated that they expect to close the deal on 18 May.
Watch: Jamie Dimon on Capital One’s $ 35.3 billion discovery acquisition: ‘Let them compete’
