In This Article:
(Reuters) - Capital One Financial Corp got the greenlight from the Justice Department for its proposed $35 billion acquisition of Discover Financial Services, the New York Times reported on Thursday.
The approval came after the DOJ told other regulators looking into the acquisition that it does not see sufficient competition concerns to block the deal, the report said. The Office of the Comptroller of the Currency (OCC) and the Federal Reserve will review the merger with input from the DOJ.
The DOJ sent a letter to the Federal Reserve and the OCC saying it had concluded its investigation and did not believe there were concerns that warranted blocking the deal, the report said, citing people familiar with the matter.
"Our deal with Discover Financial complies with the Bank Merger Act's legal requirements and we remain well-positioned to gain approval," a Capital One spokesperson told Reuters, but the company declined to comment further on the approval.
Unveiled in February 2024, the deal would create the biggest U.S. credit card issuer by balances, the sixth-largest bank by assets, and would also give Capital One control of Discover's card payment network — the fourth major payment network operator.
A spokesperson for the DOJ declined to comment, while Discover Financial did not immediately respond to a Reuters request for comment.
The deal still faces additional antitrust scrutiny from state attorneys general in New York and California.
"We are concerned that the Capital One/Discover merger could most affect those consumers who can afford it the least. No one is above the law and we’re taking a close look at this proposed merger," said a spokesperson for the office of California Attorney General Rob Bonta, a Democrat.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Alan Barona; Editing by Muralikumar Anantharaman)