Capital One to Acquire Discover in $35B Deal, Creating Payments Powerhouse
• Capital One acquiring Discover in a $35.3B deal, sparking implications for Visa, Mastercard, and AmEx • Combined company will have $630B in assets across credit cards, commercial loans, consumer loans, student loans • Estimated $2.7B in pre-tax synergies • Gives Capital One optionality to negotiate away from or price down Visa/Mastercard networks over time • Combination could prove more competitive vs. Visa, Mastercard, and AmEx in the payments space