Capital One and Discover Financial Mega-Merger Cleared by DOJ

Deal News | Apr 04, 2025 | EIN

Capital One and Discover Financial Services’ potential $35 billion merger has been cleared by the Department of Justice according to a confidential memo seen by financial regulators. The DOJ initially had antitrust concerns regarding competition and regulatory evasion but has since declared insufficient evidence to block the merger. Despite shareholder approval in February, market dynamics including President Trump's tariffs have affected the stock prices of both companies, which fell on Thursday amid broader market sell-offs. Retail sentiment remains bullish for both firms, with traders speculating optimistic share prices absent of tariffs.

Sectors

Financial Services
Antitrust and Regulatory Affairs

Geography

United States – The companies involved, Capital One and Discover Financial, are based in the U.S., and the Department of Justice, which cleared the merger, is a U.S. governmental body.

Industry

Financial Services – The article discusses a major merger between two credit card firms, Capital One and Discover Financial, indicating its relevance to the financial services industry.
Antitrust and Regulatory Affairs – The article involves antitrust discussions and approvals from the Department of Justice and other financial regulators.

Financials

$35 Billion – The merger value of Capital One and Discover Financial.

Participants

Name	Role	Type	Description
Capital One	Target Company	Company	A major U.S. bank holding company specializing in credit cards, auto loans, banking, and savings accounts.
Discover Financial Services	Bidding Company	Company	A U.S. financial services company known for its credit card offerings, banking products, and payment services.
Department of Justice	Regulatory Approver	Government	U.S. government body responsible for the enforcement of law and administration of justice, including antitrust laws.
Federal Reserve	Financial Regulator	Government	The central banking system of the United States, which regulates and oversees financial institutions.
Office of the Comptroller of the Currency	Financial Regulator	Government	A bureau within the U.S. Department of the Treasury that regulates and supervises national banks and federal savings associations.