According to The Wall Street Journal on Monday, Capital One Financial is on the verge of acquiring Discover Financial Services, a move that would combine two of the largest credit-card issuers in the United States.

This significant transaction, anticipated to be among the most substantial acquisitions of 2024, might be officially disclosed as early as Tuesday, as per reports.

It’s important to note that the deal has not been confirmed or finalized yet, and specific details are currently unavailable.

Capital One, a bank specializing in credit card issuance, boasts a customer base exceeding 100 million, as indicated on its website.

Discover has faced challenges in the past year, marked by compliance issues revealed in an internal review, leading to the resignation of its CEO, Business Insider reported.

The credit card company reported a 62% decline in profits for the fourth quarter and currently holds a market value of approximately $27.63 billion, with its shares experiencing a nearly 2% decrease for the year.

A merger of this magnitude may suggest an optimistic outlook for the anticipated resurgence of mergers and acquisitions in the coming year.

Global M&A experienced a ten-year low in the previous year, contributing to the challenges faced by investment banks that derive revenue from facilitating company transactions.

Written by B.C. Begley