Capital One to purchase Discover Financial for $35 billion

MIAMI, FLORIDA - FEBRUARY 19: A sign hangs above an entranceway to a Capital One Café on February 19, 2024, in Miami, Florida. Capital One announced plans to buy Discover Financial Services in a deal that, if completed, would merge two of the largest

Capital One Financial is set to purchase Discover Financial Services for the hefty price of $35 billion. 

It's a deal that would bring two of the nation's largest lenders and credit card issuers together. 

Those holding Discover Financial shares should expect to receive Capital One shares valued at nearly $140, according to a news release issued on Monday by the two companies. 

"From Capital One's founding days, we set out to build a payments and banking company powered by modern technology," said Richard Fairbank, the founder, chairman and CEO of Capital One. "Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies."

When will the deal close?

Capital One said the transaction is expected to close in late 2024 or early 2025, subject to the satisfaction of customary closing conditions such as regulatory approvals and approval by each company's shareholders. 

The company and Discover plan to hold a live investor presentation call on Tuesday morning at 8:00 a.m. ET.

Capital One, which is a major credit card issuer and is also the ninth-largest bank in the U.S., primarily uses Visa and Mastercard but plans to offer some of its cards through the Discover network, according to a report by the Wall Street Journal, which added that the Discover brand will be maintained on its cards and network.

FOX Business contributed to this story. It was reported from Los Angeles.