In a significant development for the financial services industry, Capital One Financial Corporation (COF) and Discover Financial Services (DFS) have announced that they have received crucial approval from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency. This approval clears the way for Capital One's proposed acquisition of Discover, a move that could reshape the landscape of banking in the United States.

This milestone follows a series of positive endorsements for the transaction, starting with the approval from the Delaware State Bank Commissioner in December 2024. Furthermore, an overwhelming majority of shareholdersmore than 99%from both companies voted in favor of the acquisition in February of this year. With all necessary regulatory approvals now secured, the deal is anticipated to close on May 18, provided that standard closing conditions are met.

In a statement released by both companies, they emphasized that there will be no immediate changes to customer accounts or relationships for the clients of Capital One and Discover, either at the time of the transaction's closure or in the immediate aftermath. They reassured customers that comprehensive information regarding any relevant conversion activities will be provided well in advance of any future changes. In the meantime, customers will continue to receive service through their existing communications channels for both Capital One and Discover.

Richard Fairbank, the Founder, Chairman, and CEO of Capital One, expressed his enthusiasm regarding the acquisition. He stated, 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. He further acknowledged the hard work of the thousands of associates at both companies who contributed to reaching this significant milestone and expressed optimism about the future. Fairbank conveyed a profound sense of responsibility to deliver exceptional services for their customers, associates, shareholders, and communities.

As the acquisition progresses, it is worth noting the competitive nature of the banking industry, which has been increasingly adapting to new technologies and consumer demands. Both Capital One and Discover are known for their innovative approaches, making this merger a potentially transformative move.

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This news was first published on TheFly, a leading source for real-time, market-moving financial news.