Capital One’s Acquisition of Discover Receives Shareholder Approval

Capital One is one step closer to acquiring Discover after shareholders of both companies approved the deal.

The acquisition, which was announced in February 2024, sees Capital One acquiring Discover for $35.3 billion, positioning it as the largest credit card company by loans, ahead of JPMorgan.

In a shareholder meeting, more than 99.8% of Capital One shares voted in favor of the transaction while over 99.3% of the Discover shares approved the deal.

Although the deal has received shareholder approval and was previously cleared by the Delaware State Bank Commissioner in December, it still requires approval from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.

If it receives this approval, it is expected that the transaction will close in early 2025.

In a press release, Discover said that stockholder approval is a key milestone in the process of combining Capital One and Discover, two mission-driven companies with a proven track record of providing top-tier solutions for consumers, small businesses, merchants, and communities.

It also marks progress in the acquisition, following earlier setbacks when two Capital One customers filed a lawsuit against both Capital One and Discover. The lawsuit claimed the proposed acquisition would reduce competition, raise prices, and violate U.S. antitrust laws, therefore it should be blocked.

New York Attorney General Letitia James also launched an investigation into whether the merger violates antitrust laws, cautioning that its impact would be especially significant for vulnerable New Yorkers with subprime credit scores.