Capital One's $35bn deal takes aim at Visa and Mastercard

Capital One's proposed acquisition of Discover Financial Services, valued at $35.3 billion, seeks to merge two major credit card lenders and expand control over a network connecting consumers, merchants, and banks. The deal, anticipated to close by early 2025, faces heightened regulatory scrutiny under President Biden's administration, which has prioritized competition restoration across sectors. Despite potential benefits to industry competition, critics raise concerns over further consolidation in an already concentrated market. Capital One expects to enhance its competitive edge through the integration, although doubts persist regarding regulatory approval. The transaction underscores broader trends toward consolidation in the financial industry, with potential implications for future mergers and regulatory oversight.