NEW YORK/WASHINGTON — Capital One, a US consumer lender backed by Warren Buffett, said on Monday that it will acquire credit card issuer Discover Financial Services in an all-stock transaction valued at $35.3 billion.
The tie-up, which will combine two of the largest US credit card companies, aims at building “a payments network that can compete with the largest payments networks and payments companies,” Richard Fairbank, chairman and CEO of Capital One, said in a statement.
Visa, Mastercard, and American Express are among other US-based payments networks.
Discover shareholders will receive 1.0192 Capital One share for each Discover share. It represents a 26.6% premium over Discover’s closing price on Friday.
Source: Capital One to buy Discover Financial in $35.3 billion all-stock deal…
