The U.S. Department of Justice is reportedly leaning toward allowing Capital One (NYSE: COF)’s $35.3 billion acquisition of Discover (NYSE: DFS), despite initial antitrust concerns.
According to the Capital Forum, the DOJ has shifted its focus to how the merger would potentially harm consumers with no credit history but may lack a strong case to challenge the deal in court on these grounds. Capital One announced the merger in February 2024, aiming to create a global payments platform. Shareholders overwhelmingly approved the deal, which still requires regulatory clearance from the Federal Reserve and the Office of the Comptroller of the Currency.
However, state-level opposition remains. New York Attorney General Letitia James has raised concerns about market concentration, particularly in the subprime sector, where the combined company would hold a 30 percent share.