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Discover Financial Services will be acquired by Capital One Financial Corporation for a price of $35.3 billion. According to the press office of Capital One, for every Discover share, the company would pay 1.0192 shares of its own stock, which is a 26.6% premium over the closing price on February 16 ($110.49).
The deal is anticipated to close in late 2024 or early 2025A after receiving permission from shareholders and regulators. As a result, 40% of the combined business will belong to Discover shareholders and 60% to Capital One shareholders.
According to Bloomberg, the merger of the two consumer finance companies will enable the merged business to overtake competitors Citigroup and JPMorgan Chase & Co. in terms of credit card balances in the United States. Capital One CEO Richard Fairbank said in a statement that there is a "unique opportunity" to unite two businesses that can rival the biggest payment networks.
The deal will be the biggest in the worldwide M&A market. The greatest purchase to date is thought to be Synopsys' $34 billion acquisition of software provider Ansys, which was disclosed in January.
source: reuters.com
The deal is anticipated to close in late 2024 or early 2025A after receiving permission from shareholders and regulators. As a result, 40% of the combined business will belong to Discover shareholders and 60% to Capital One shareholders.
According to Bloomberg, the merger of the two consumer finance companies will enable the merged business to overtake competitors Citigroup and JPMorgan Chase & Co. in terms of credit card balances in the United States. Capital One CEO Richard Fairbank said in a statement that there is a "unique opportunity" to unite two businesses that can rival the biggest payment networks.
The deal will be the biggest in the worldwide M&A market. The greatest purchase to date is thought to be Synopsys' $34 billion acquisition of software provider Ansys, which was disclosed in January.
source: reuters.com
