US-based financial holding company Capital One Financial has completed its acquisition of Discover Financial Services, which provides online banking, reward credit cards, home equity loans, and personal loans.
The deal, initially announced on 19 February 2024, received necessary approvals from regulatory bodies, including the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Delaware State Bank Commissioner, with the last approval granted on 18 December 2024. Shareholders of both companies endorsed the transaction on 18 February 2025.
Capital One founder and CEO Richard Fairbank said: “This deal brings together two innovative, mission-driven companies that together are poised to deliver breakthrough products and experiences to consumers, businesses, and merchants.”
Following the acquisition, Capital One has expanded its Board of Directors from 12 to 15 members. Thomas Maheras, Michael Shepherd, and Jennifer Wong, all former Discover board members, have joined the Capital One board.
Currently, there are no changes to customer accounts or banking relationships for both Capital One and Discover. Customers will receive detailed information ahead of any future changes. Until then, they will continue to use existing customer tools and services.
Capital One plans to maintain Discover credit card products under the Discover brand alongside its current consumer card offerings. The Discover, PULSE, and Diners Club International networks will be integrated into Capital One’s suite of services.
Fairbank added: “I am particularly grateful for the leadership and partnership of Discover’s Board of Directors, its Executive Management Committee, and interim CEO Michael Shepherd. Their advocacy for Discover and its customers, and our shared commitment to a successful closing, were instrumental in achieving today’s milestone.
“Through the efforts of thousands of associates across Capital One and Discover, we are well-positioned to continue our quest to change banking for good for millions of customers.”
In a separate development, Capital One has agreed to a $425m settlement related to litigation accusing it of misleading savings depositors regarding interest rates. The preliminary settlement awaits judicial approval in the US District Court for the Eastern District of Virginia.
The lawsuit alleged that Capital One did not properly advertise higher interest rates available on 360 Performance Savings accounts, misleading depositors with a fixed rate of 0.3% on 360 Savings accounts.
