Capital One-Discover merger deal termination fee set at $1.38 billion
Reuters
Published Feb 22, 2024 04:54PM ET
Updated Feb 22, 2024 05:11PM ET
(Reuters) -Discover Financial Services or Capital One Financial (NYSE:COF) will pay a termination fee of $1.38 billion if the merger of the firms falls through under any circumstance, a regulatory filing showed on Thursday.
The all-stock deal announced on Monday would create the biggest U.S. credit card issuer, but it would also give Capital One access to Discover's payment network, allowing it to rely less on payments giants Visa (NYSE:V) and Mastercard (NYSE:MA).
Capital One, the third-largest issuer of Visa and MasterCard credit cards in the United States, said earlier in the week, shifting its card portfolio from those two payment giants to Discover's network would help it generate $1.2 billion in 2027.
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Written By: Reuters
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