Capital One is buying Discover for $35 billion. Heres what to know and what comes next

▤ Summary

Capital One announced Monday that it is acquiring the credit card company Discover in an all-stock deal valued at $35.3 billion. This also marks the largest merger of the year so far, surpassing the tech design company Synopsys’s $35 billion acquisition of software developer Ansys. Capital One plans to switch some of its credit cards to the Discover network, the Wall Street Journal reported. The average bank credit card interest rates reached a record high of 21.5% in November 2023. “The deal also poses massive anti-trust concerns, given the vertical integration of Capital One’s credit card lending with Discover’s credit card network,” National Community Reinvestment Coalition president and CEO Jesse Van Tol told the AP.

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