Capital One’s $35 Billion Acquisition of Discover Official as Merger Completes

McLean, Virginia — Capital One‘s $35 billion acquisition of Discover has officially closed on Sunday, May 18, 2025. This merger creates the largest credit card issuer by loan volume in the United States.

“This deal brings together two innovative, mission-driven companies that are poised to deliver breakthrough products and experiences to consumers, businesses, and merchants,” said Richard Fairbank, Capital One’s Founder and CEO, in a news release. He also acknowledged Discover’s board and interim CEO for their support during the acquisition process.

The merger was first announced in February 2024, and it received regulatory approval from both the Federal Reserve Bank and the Delaware State Bank Commissioner earlier this year. However, concerns arose as a pair of Democratic lawmakers expressed worries about the impact on consumers.

In a letter to the Federal Reserve, Representatives Eric Swalwell of California and Ayanna Pressley of Massachusetts argued that the merger could harm small businesses and consumers, suggesting that merchants would have to accept terms dictated by the newly formed Capital One network.

Despite these concerns, industry experts noted potential benefits to Discover, positing that the added backing could help the company compete better against Visa and Mastercard, which dominate the credit card market. After the acquisition, Capital One aims to build a payments network that can rival these established players.

In other recent news, Capital One agreed to a $455 million settlement in a case involving allegations of misrepresentation regarding interest rates on its 360 Savings accounts.

As for the future of cardholders, it remains unclear how exactly the merger will affect existing Discover and Capital One customers. Capital One assured that no immediate changes would occur following the acquisition, with plans to communicate any updates well in advance.