On Monday, Capital One Financial announced it will be buying Discover Financial Services for $35.3 billion, in a deal that will combine two of the nation's largest credit card issuers.
Discover investors will receive a massive benefit, as the deal will trade their shares of Discover for Capital One shares. As of close of business on Friday, shares of Discover were worth $110.49. Those investors will be receiving Capital One Shares that were worth $137 at market close.
"Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies," Richard Fairbank, the founder, chairman and CEO of Capital One said.
By - SC
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