Feb 23, 2024 - Business

Capital One won't pay breakup fee if government stops Discover deal

Capital One headquarters

Photo by J. David Ake/Getty Images.

Capital One will not pay a termination fee to Discover Financial if regulators block their proposed $35.3 billion merger, per a Thursday disclosure.

Why it matters: Capital One just revealed that it lacks confidence in getting over the finish line, despite CEO Richard Fairbank claiming it's "well-positioned for approval."

  • An alt take is that Discover was the much more eager party, going so far as to offer a $1.38 billion reverse termination fee were it to pick another buyer.

The bottom line: This is the largest merger announced so far in 2024, and would create the top U.S. credit card issuer by loan volume, but is far from a done deal.

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