Capital One to buy Discover Financial in US$35.3bil all-stock deal

When concluded, Capital One shareholders will own 60% of the combined company, while Discover shareholders will own approximately 40%. — AFP

NEW YORK: Capital One, a US consumer lender backed by Warren Buffett, says it will acquire credit card issuer Discover Financial Services in an all-stock transaction valued at US$35.3bil.

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 chief executive of Capital One, said in a statement on Monday.