The Capital One bank on Monday night announced it is acquiring Discover Financial Services for $35.3 billion in an all-stock deal.
Capital One shareholders will own a 60% stake in the combined company, while Discover shareholders will own the remaining 40%, if the deal is finalized.
Discover shareholders will receive a little over one share of Capital One for every Discover share they own.
The deal is expected to close late 2024 or early 2025.
Because Discover issues its own credit cards, the deal should give Capitol One a big advantage against competing credit card-issuing banks such as JPMorgan Chase, Bank of America and Citigroup, which don’t process transactions themselves, according to CNN.