US retail bank Capital One has announced plans to acquire US credit card issuer Discover Financial Services in a $35.3bn all-stock deal. The acquisition would create the sixth-largest US bank by assets and a credit card business that can compete with rivals JPMorgan and Citi. Discover also has a payments business that, while smaller than rivals Visa and Mastercard, covers around 200 countries and territories within its network.
The timing of a potential deal coincides with planned reforms to US bank merger regulations, with regulators aiming to bolster transparency and intensify scrutiny. The planned merger between Capital One and Discover is expected to face heightened antitrust scrutiny, given the substantial size of their respective credit card businesses.
