Capital One has completed its acquisition of Discover, valued at $35.3 billion, resulting in Capital One controlling 60% of the combined entity. Following an extensive review, Capital One has decided to exit the home equity and refinance loan business. A commitment of $265 billion will be made over five years to improve community access to housing. The acquisition included a $100 million settlement for overcharging interchange fees, while regulatory issues were addressed with the CFOB dropping legal action against Capital One.
Under the terms of the deal, Capital One shareholders now own 60% of the combined company, with the remaining 40% held by Discover shareholders.
A Capital One spokesperson said the company conducted an extensive strategic business review of Discover's home equity and refinance loan business to better understand its position and potential.
As part of the acquisition, Capital One committed to investing $265 billion over five years through a community benefits plan, which includes expanding access to safe and affordable housing.
In clearing regulatory hurdles tied to the deal, Capital One agreed to pay a $100 million penalty to settle charges that Discover had overcharged certain interchange fees.
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