AssetID: 53485789
Headline: UNCAPTIONED: Capital One to Acquire Discover
Caption: Capital One to Acquire Discover. Capital One Financial will buy Discover Financial Services in an all-stock deal worth $35.3 billion, CNBC reports. The deal is expected to close at the end of 2024 or beginning of 2025. Once the acquisition is finalized, Capital One and Discover shareholders would own 60% and 40% of the combined company, respectively, CNBC reports. The merger would allow Capital One to increase its credit card offerings and deposit base. "Discover has done a better job of bringing in a lot of deposits and [has] access to a lot of institutions to run the debit card network and provide service." , "So it gives them a lot of deposit gathering ability, which particularly in the current market is enormously important." consumer retail and banking, via CNBC. The company intends to keep the Discover brand in place. The financial industry hasn't seen many acquisitions that parallel the Capital One-Discover merger, CNBC reports. The deal will likely affect similar "merger activity within the sector," according to David Schiff, West Monroe’s head of consumer retail and banking. "It’s a good example of the risk we’re seeing in the market, where the competing interests from regulators for increased control and rigor balance against the competitive demands that are being made quite clearly, in terms of the overall market.", David Schiff, West Monroe’s head of consumer retail and banking, via CNBC. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Capital One,Bank,Acquire,Discover,Financial Services,Worth,Deal,Shareholders,Combined,Company,Merged,Important,Consumer,Network,Provide,Service
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