Capital One's $35.3 Billion Takeover of Discover Approved by Regulators

U.S. regulators have approved Capital One's $35.3 billion acquisition of Discover Financial Services, positioning the merged entity as the nation's eighth-largest bank. The deal marks a significant consolidation in the banking sector and elevates Capital One's standing in the credit card market.

U.S. banking regulators granted approval on Friday for Capital One's $35.3 billion acquisition of Discover Financial Services, paving the way for them to merge into the nation's eighth-largest bank.

This merger has been under close scrutiny by financial executives, considering it as an indicator of how President Donald Trump's administration might handle future banking consolidations. The Federal Reserve and the Office of the Comptroller of the Currency completed a comprehensive review of the 2024 application. The approval means Capital One will become the top U.S. credit card issuer by balances, gaining control over Discover's card payment network.

The merger is set to close on May 18, with Capital One poised to offer stiff competition to Visa and Mastercard in the payment-processing sector. The Justice Department previously concluded no significant competitive issues were present to block the deal.

(With inputs from agencies.)