In February 2024, Capital One surprised many by announcing the acquisition agreement for Discover Financial Services valued at more than $35 billion. After a rigorous 14-month regulatory review, the Capital One–Discover merger has secured the necessary approvals and is set to close the deal on May 18, 2025.
Capital One and Discover Poised to Merge
The Federal Reserve and the Office of the Comptroller of the Currency (OCC) have approved Capital One’s acquisition of Discover, according to the bank’s press release. These authorizations appear, it seems, to be the final two regulatory clearances needed to close the largest merger in the banking sector in at least six years; but they come with special conditions.
It is important to note that the OCC approval hinges on Capital One submitting a plan within 120 days after the merger closes, detailing the steps it intends to take to address the “root causes of any pending enforcement actions against Discover Bank and the plans for remedying the harm,” as well as a timeline. With the approvals, the transaction is expected to close on May 18, 2025.
“The merger of our two large companies will increase competition in payment networks, offer a broader range of products to our customers, bolster our resources dedicated to innovation and security, and generate meaningful benefits for the community,” stated Michael Shepherd, interim Chief Executive Officer and President of Discover.
On the other hand, Richard Fairbank, founder, chairman, and CEO of Capital One, took the time to thank Discover and Capital One associates for their work in reaching this milestone. “We look forward to bringing these two great companies together with a deep sense of possibility and responsibility to deliver results for our customers, associates, shareholders, and communities,” he said in the release.
Capital One and Discover Merger: Changes for Customers
For the moment, there will be no immediate changes, nor in the period immediately after the merger closes, to the accounts or customer relationships of Discover and Capital One. So customers of both banks will continue to be served through their respective communication channels. But there are some changes that Capital One and Discover customers could see in the future.
