Capital One Finalizes its Acquisition of Discover

Capital One closed its deal to acquire Discover on Sunday. The acquisition, first announced in February 2024, figures to reshape the credit card landscape in the U.S. as it creates the largest credit card issuer in terms of loan volume in the nation.

“This deal brings together two innovative, mission-driven companies that together are poised to deliver breakthrough products and experiences to consumers, businesses, and merchants,” Richard D. Fairbank, Founder and CEO of Capital One, said in a press release announcing the closure of the deal.

The acquisition had cleared final regulatory hurdles in recent months, and Capital One and Discover stockholders voted to approve the purchase in February 2025. But the deal didn’t cross the finish line without encountering a few obstacles along the way.

Capital One and Discover stockholders indicated their support of the acquisition in a February 2025 vote.

Senator Elizabeth Warren (D-MA) and Representative Maxine Waters (D-CA) co-authored a letter earlier this month urging the Federal Reserve Board to reconsider its approval of the acquisition.

The two politicians took the side of the little guy by saying in their letter that the union between Capital One and Discover will cause “serious harm” to both consumers and merchants. 

But you know Warren and Waters didn’t stop there. They went on to point out that the Federal Reserve’s decision to approve the acquisition “did not include an appropriate assessment of the competitive effects on the credit card market or impact on U.S. financial stability.”

The deal closed despite the objections of Warren and Waters, paving the way for the merged entity to realize cost savings as a result of operating under one roof. A report on the merger says the synergies between Capital One and Discover stand to produce an estimated $2.7 billion in savings by 2027.

Significant achievements in our lives are often made possible when we work together. Fairbanks touched on the teamwork between the two companies when speaking about the deal’s closing in the press release.

“I am particularly grateful for the leadership and partnership of Discover’s Board of Directors, its Executive Management Committee, and interim CEO Michael Shepherd,” Fairbanks said. “Their advocacy for Discover and its customers, and our shared commitment to a successful closing were instrumental in achieving today’s milestone.”

The combined company will continue to leverage the strengths of people who formerly spent some of their time working on Discover’s behalf.

As a result of the deal, Capital One is making the size of its board of directors bigger, increasing it from 12 to 15 people. The three new slots on Capital One’s board have been awarded to people that used to be on Discover’s board.

If you’re an account holder with Capital One or Discover, then account changes could be in store for you. But for the time being, you can continue to use products, services, and channels offered by both companies. Capital One will provide you with information in advance regarding any upcoming changes, according to the company’s release.

Are you a fan of the Discover moniker and the company’s branding? Then I have some good news for you. You don’t need to mourn the passing of an iconic name in the financial services arena. Capital One plans to continue offering Discover-branded credit card products to people following the acquisition’s close.

Change can be scary for anyone. In business, change can be particularly intimidating to people when it involves long-established names and brands. But Fairbanks believes the best is yet to come for people who enjoy Capital One’s offerings.

“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,” he said.