Capital One updates on discover merger progress

EditorNatashya Angelica
Published 01/24/2025, 07:07 AM
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Capital One Financial Corp (NYSE:COF), currently valued at $77.8 billion and trading near its 52-week high of $207.24, provided an update today on its ongoing merger with Discover Financial Services (NYSE:DFS), furnishing financial data and restated financial statements as part of its regulatory disclosures.

According to InvestingPro data, Capital One has demonstrated remarkable strength with a 58% return over the past year. This information comes as the companies continue to navigate the merger process that was initially announced on February 19, 2024.

The latest filing includes a financial data supplement released by Discover on January 22, 2025, covering the quarter and the twelve months ended December 31, 2024. It should be noted that Discover's independent accountants have not audited this preliminary fourth quarter and year-end financial information, nor have they expressed any opinion on it.

Moreover, Discover filed amended annual and quarterly reports to restate its audited and unaudited financial statements for various periods up to September 30, 2024. These restatements and filings are part of the ongoing efforts to ensure accurate financial reporting in the lead-up to the merger's completion. Capital One enters this merger from a position of strength, with InvestingPro analysis showing a "GREAT" overall financial health score and maintaining dividend payments for 30 consecutive years.

As part of the merger, initially disclosed on February 19, 2024, Discover will first merge with a subsidiary of Capital One, followed by a second-step merger into Capital One itself. Afterward, Discover Bank will merge with Capital One National Association.

The merger is subject to regulatory, shareholder, and other approvals, and involves certain risks and uncertainties. These include potential delays or costs, integration challenges, and the need for regulatory approvals which could impose conditions affecting the anticipated benefits of the merger.

The pro forma financial statements and other information provided in the report are based on assumptions and estimates and do not reflect actual results that would have been achieved had the merger been completed earlier, nor are they indicative of future results.

This update is based on the information contained in the SEC filing by Capital One Financial Corp. For deeper insights into Capital One's financial metrics and 8 additional exclusive ProTips, including detailed merger analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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