(RestoreAmericanGlory.com) – On Monday, Capital One announced that they were going to be acquiring Discover Financial Services in an all-stock transaction that will cost $35.5 billion. This move is expected to increase the bank’s standing in the current credit card market.
Discover shareholders are going to be receiving a little over 1 (1.0192) Capital One share for every Discover share currently in their possession. This 27 percent premium case after the closing price on Friday according to a statement released on Monday night by Capital One.
Capital One shareholders are going to be owning around 60 percent of the combined company after the closing of the deal while Discover shareholders will own around 40 percent.
Richard Fairbank, the CEO, chairman, and founder of Capitol Once issued a statement noting that the acquisition of Discover is a great opportunity to bring together large successful companies and help in the creation of a payments network that would be able to compete with the payment companies and largest payments networks.
He proceeded to point out that through this combination they would be creating a company that is very well-positioned and that would provide consumers with a lot of value as they would transform the banking and payments marketplace.
Discover President and CEO Michael Rhodes in his statement argued that this deal would help unite “two strong brands” and would offer both customers and shareholders more opportunities.
The deal is expected to finalize in late 2024 or early 2025 depending on the receipt of regulatory approvals from both companies.
Copyright 2024, RestoreAmericanGlory.com
