Capital One Financial is reportedly set to acquire Discover Financial Services in an all-stock deal, according to sources cited in a report from The Wall Street Journal. The deal, which could be announced as soon as Tuesday, would see Capital One retaining the Discover brand while expanding its credit card offerings.
Both companies are major players in the credit card industry in the U.S., with Capital One already using Visa and Mastercard networks. The acquisition would mark one of the largest deals announced this year, following Synopsys' $35 billion acquisition of Ansys in January and Diamondback Energy's $26 billion deal to buy Endeavor Energy in February.
Shares of Discover are down 1.7% for the year, giving the company a market cap of $27.63 billion. In contrast, Capital One has a market cap of $52.2 billion and its shares are up 4.6% in 2024.