Capital One and Discover are awaiting regulatory and shareholder approval for their deal. 

The bank first announced its acquisition of Discover in February 2024 in an all-stock deal worth $35.3 billion.

The $490 billion bank’s acquisition of Discover is expected to close in early 2025, Capital One Chief Executive Richard Fairbank said during the bank’s fourth-quarter earnings call on Jan. 21. “We continue to work closely with the Federal Reserve, the [Office of the Comptroller of the Currency] and the Department of Justice as our applications continue to work their way through the regulatory approval process,” he said. 

Movement on the deal came in December when Capital One received merger approval from the Delaware State Bank commissioner, Discover interim CEO Michael Shepherd said during Discover’s Q4 earnings on Jan. 22. 

Next, the institutions will hear from their shareholders in a vote scheduled for Feb. 18, according to the companies’ earnings presentations.

Integration costs

While approval has not been granted yet, integration planning and investment has already begun.  

In 2024, Capital One’s integration expenses totaled $234 million, according to the bank’s earnings supplement.  

Investments are expected to continue in: 

• Compliance and risk management; 

• International expansion; and 

• Building the network brand. 

On the Discover side, “Integration planning efforts are progressing well in preparation for a smooth transition,” Shepherd said.  

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