At the entrance to a Capital One Bank branch in Manhattan.
Erik McGregor | Light rocket | Getty pictures
The application of Capital One Financial to acquire financial services in an all-standard deal of $ 35.3 billion was officially approved by the Federal Reserve and the office of the Compotroller of the Currency, the supervisory authorities announced on Friday.
“The board assessed the application according to the legal factors that it must take into account, including the financial and management resources of companies, the convenience and needs of the communities, which are to be served by the combined organization, as well as the effects of the competition and financial stability of the proposal,” said the FED in release.
Capital One initially announced that it had concluded a final agreement to acquire discover in February 2024. It will also indirectly acquire Discover Bank through the transaction, which was approved on Friday by the Currency Competroller office.
As part of the agreement, Discover shareholders receive 1.0192 capital -On shares for every discover share or about 26% premium compared to the closing price of discover of $ 110.49 at this point, said Capital One in a press release.
Capital One and Discover are among the largest credit card exhibitors in the USA, and the merger will expand the deposit base and credit card offers from Capital One.
As a condition of the merger, Capital One said that, according to the publication, she would comply with the Fed's action against discover. The FED discovered a fine of $ 100 million for the overload of certain exchange fees from 2007 to 2023, and the company pays back these fees to the customers concerned.
The OCC said that capital -One proposed that it would require “corrective measures” to remedy damage and to fix the “basic causes” outstanding enforcement measures against discover.
After completing the contract, the shareholders will hold 60% of the combined company from Capital One, while discovering that the shareholders have 40% in February 2024.
In a joint statement, Capital One and Discover said that they expect to complete the deal on May 18.
REGARD: Jamie Dimon via Capital Ones 35.3 billion US dollars Discover the acquisition: “Let it compete”