Capital One has been cleared to acquire Discover, with the Board of Governors of the Federal Reserve System and the Office of Comptroller of the Currency approving the acquisition.

Capital One and Discover are two of the most well-known names in the financial and credit card industry. The two companies had already received approach from the Delaware State Bank Commissioner in late 2024, but the federal approval now paves the way for the acquisition to move forward.

“This is an exciting moment for Capital One and Discover. We understand the critical importance of a strong and competitive banking system to our customers and our economy, and we appreciate the thoughtful and diligent engagement of our regulators as they thoroughly reviewed this deal over the past 14 months,” said Richard Fairbank, Founder, Chairman, and CEO of Capital One. “I am grateful to the thousands of associates across Capital One and Discover who have worked tirelessly to help us achieve this significant milestone. We look forward to bringing these two great companies together with a profound sense of possibility and responsibility to deliver for our customers, associates, shareholders, and communities.”

“The combination of our two great companies will increase competition in payment networks, offer a wider range of products to our customers, increase our resources devoted to innovation and security, and bring meaningful community benefits,” said Michael Shepherd, Interim CEO and President of Discover.

The companies says nothing will change with the operations of either card, either immediately or in the immediate aftermath of the acquisition. The companies do hold out the possibility of change down the road, but say any such change will be communicated well in advance.

Capital One touted the two companies’ history “of challenging the status quo,” making a merger between the two companies a natural fit.

Capital One and Discover have a shared heritage of challenging the status quo and helping customers succeed. Since its founding, Capital One has been guided by a belief that no consumers should be prevented from accessing credit nor be locked out of the financial system. And today, we remain committed to serving American consumers across the credit spectrum.

Capital One was the first national bank to eliminate overdraft fees and provide the service for free. Discover has been a pioneer of cash back rewards with a legacy of award-winning customer service and exceptional customer advocacy. Together, these two companies are excited to drive innovation, increase competition in banking and payments, and serve customers with ingenuity and humanity.