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Banking strategiesFebruary 23

A US credit card juggernaut waiting to be formed

Capital One has big plans for acquisition target Discover Financial. But will they work?
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A US credit card juggernaut waiting to be formedImage: Capital One agreed to buy Discover Financial Services in a $35bn all-stock deal to create the largest US credit card company by loan volume. Image: Angus Mordant/Bloomberg

Warren Buffett’s ownership of stock in a bank such as Capital One indicates the management there must be doing a good job. Earlier this week, the Virginia-based lender announced it would buy Discover Financial for £35bn. 

The proposed tie-up could be one of the biggest deals in the sector since the 2008 financial crisis, creating a juggernaut that disrupts the US credit card landscape. 

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Michael Klimes is the investment banking and capital markets editor at The Banker. He joined the publication from Money Marketing where he was acting editor. He wrote about pensions for nine years on the retail and institutional side. He won B2B pensions journalist of the year at the Headline Money Awards 2022.
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