Capital One to buy Discover for $35 billion in deal that combines major US credit card companies

Capital One Financial is buying Discover Financial Services for $35 billion, in a deal that would bring together two of the nation’s biggest lenders and credit card issuers. Discover Financial shareholders will receive Capital One shares valued at nearly $140, according to a news release issued by the companies Monday. Discover shares closed Friday trading at $110.49. Virginia-based Capital One was the 12th largest U.S. bank as of the third quarter. Illinois-based Discover was the 33rd biggest. Both banks have benefitted from Americans increasingly using their credit cards, but have also needed to set aside more money to guard against defaults.