Capital One Financial Corporation entered into a definitive agreement to acquire Discover Financial Services for $35.3 billion.
The transaction is subject to satisfaction of customary closing conditions, including regulatory approvals from Federal Reserve System and Office of the Comptroller of the Currency; approval by the shareholders of Capital One Financial Corporation and Discover Financial Services; authorization for listing on the New York Stock Exchange of the shares of Capital One Common Stock to be issued in the Merger, subject to official notice of issuance; effectiveness of the registration statement on Form S-4; and Discover and Capital One shall have received the opinion of respective legal advisor dated as of the Closing Date, to the effect that, on the basis of facts, representations and assumptions set forth or referred to in such opinion, the Mergers, taken together, will qualify as a ?reorganization? within the meaning of Section 368(a) of the Code. The transaction has been unanimously approved by Board of Capital One Financial Corporation and Discover Financial Services. As on April 24, 2024, the Federal Reserve Board announced it will extend through May 31, 2024, the public comment period for the application by Capital One Financial Corporation to acquire Discover Financial Services. The comment period is being extended to provide additional time for interested parties to comment on the proposal. As of April 24, 2024, the Office of the Comptroller of the Currency extended the comment period until May 31, 2024. The transaction is expected to close in late 2024 or early 2025. The deal is expected to be more than 15% accretive to adjusted non-GAAP Earning Per Share in 2027.
Edward D. Herlihy, Matthew M. Guest, Brandon C. Price, Jeannemarie O'Brien, Richard K. Kim, Rosemary Spaziani, Nelson O. Fitts, Franco Castelli, Gregory E. Pessin and Joshua M. Holmes of Wachtell, Lipton, Rosen & Katz LLP aced as legal advisors to Capital One. Centerview Partners LLC acted as financial advisor and fairness opinion provider to Capital One. H. Rodgin Cohen, Mitchell S. Eitel, Jared M. Fishman, Marc Treviño, Sarah Remmer Long, S. Eric Wang, Michael Orchowski, Mehdi Ansari of Sullivan & Cromwell LLP acted as legal advisors to Discover Financial Services. John Esposito, Thomas Chen, Samantha Owades and Michael O'Byrne of Morgan Stanley & Co. LLC acted as financial advisors and PJT Partners LP acted as financial advisor and fairness opinion provider to Discover Financial Services. In connection with Centerview?s services as the financial advisor to the Capital One board of directors, Capital One has agreed to pay Centerview an aggregate fee of $42 million, $5 million of which was payable upon the rendering of Centerview?s opinion and the remainder of which is payable contingent upon consummation of the Transaction. As compensation for its services in connection with the mergers, PJT Partners is entitled to receive from Discover an aggregate fee of $48 million, $10 million of which became payable upon the delivery of PJT Partners? opinion to the Discover board of directors and the remainder of which is contingent and payable upon the consummation of the mergers. Computershare Inc. and Computershare Trust Company, N.A., acting jointly, will serve as the depositary, and Computershare Trust Company, N.A. will serve as transfer agent and registrar for the Capital One. Discover has retained Innisfree M&A Incorporated as proxy solicitor for a base fee of $50,000. Capital One has retained Morrow Sodali as proxy solicitor for a base fee of $65,000.