Capital One is set to acquire Discover, merging 2 of the US' largest credit-card companies

• Capital One is readying an acquisition of Discover Financial Services, according to The Wall Street Journal.
• The deal would merge two of the largest credit-card issuers in the US.
• Discover is coming off a difficult year after compliance lapses led to a CEO resignation.

Capital One Financial is poised to acquire Discover Financial Services, The Wall Street Journal reported Monday, in a deal that would merge two of the largest credit-card issuers in the US.

This mega-deal would rank as one of the largest acquisitions of 2024 and could be announced as soon as Tuesday, according to reports. The deal is not certain or final yet, and details are not yet available.

Capital One, a bank that issues credit cards, serves more than 100 million customers, according to its website.

Discover is coming off of a difficult year in which compliance lapses found in an internal review led to the resignation of its CEO. The credit card company reported a 62% drop in Q4 profits and currently carries a market value of around $27.63 billion, with shares down nearly 2% for the year.

Meanwhile, Warren Buffet-backed Capital One's shares are up nearly 5% in 2024, reaching a market cap of $52.2 billion.

An acquisition of this size could signal a better year ahead for a long-anticipated rebound in mergers and acquisitions. Global M&A fell to a 10-year low last year, marking a drag on the investment banks that make money helping boards and investors buy and sell companies.