Capital One is considering acquiring Discover Financial, multiple outlets reported Monday, a move that would combine two of the nation’s largest credit card companies and reportedly create the single biggest U.S. credit card firm by volume of loans.
The acquisition would reportedly be Capital One’s largest deal to date.
The Wall Street Journal reported a deal could be announced as early as Tuesday, citing sources familiar with the matter, after Bloomberg reported earlier Capital One was exploring an acquisition of the Illinois-based company.
Capital One intends to buy Discover in an all-stock deal, the Journal reported, though the financial terms remain unclear.
Capital One is a bank that issues credit cards—currently those affiliated with Visa and Mastercard—while Discover Financial both issues cards and runs its own payment network that competes with Visa to facilitate credit card transactions.
The move would be Virginia-based Capital One’s largest ever deal, according to Bloomberg.
Capital One and Discover Financial didn’t immediately respond to Forbes’ requests for comment.
Around $52.2 billion. That’s how much publicly traded Capital One is worth. Discover Financial is worth about $27.6 billion.
According to Bloomberg, the merger could be one of the largest global acquisitions in 2024. The top deal thus far has been Synopsys’ January acquisition of Ansys, a software manufacturer, for around $34 million.
Capital One is Buying Discover Financial (The Wall Street Journal)
Capital One Weighs Acquisition of Discover Financial (Bloomberg)
Discover Slumps as Profit Plunges 62% Amid Compliance Costs Pain (Bloomberg)