Capital One has announced plans to buy fellow US credit card issuer Discover for $35.3 billion.

The company said that move would create a "global payments platform at scale", building on Discover's 70 million merchant acceptance points across more than 200 countries and territories.

Following the purchase, which will see the merging of two of the United States' largest credit card companies, Capital One shareholders will own around 60 per cent of the enterprise.
Discover shareholders will own the remaining 40 per cent of the company.

"From Capital One's founding days, we set out to build a payments and banking company powered by modern technology,” said Richard Fairbank, founder, chairman and chief executive, Capital One. “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.”

He continued: “Through this combination, we're creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace."

The acquisition is expected to generate network synergies of $1.2 billion in 2027, driven by adding Capital One debit purchase volume and selected credit card purchase volume to the Discover network.

"The transaction with Capital One brings together two strong brands with enhanced ability to accelerate growth and maximises value for our shareholders, enabling them to participate in the tremendous upside of the combined company," said Michael Rhodes, chief executive and president of Discover. "This agreement underscores the strength of our business and is a testament to the hard work of Discover employees. We look forward to a bright future as part of the Capital One family and to providing expanded opportunities for our loyal customers."

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