Capital One plans to buy Discover. Graphics show what that could mean for your credit card

Capital One consumer bank plans to buy the Discover credit card company in a $35.3 billion deal that would combine two of the largest credit card providers in the U.S., the company announced Monday.

The all-stock transaction, if approved by financial regulators, would create the sixth-largest U.S. bank by assets. The agreement is expected to close late this year or early in 2025, Capital One said.

Capital One shareholders will own 60% of the combined company. Discover shareholders will own 40%.

Closer look: Details on the Capital One deal.

More Americans are using credit cards, and the corresponding debt has increased in recent months. Credit card balances rose $50 billion to $1.13 trillion in the fourth quarter of 2023, the Federal Reserve Bank of New York reported.

How Capital One would change, using the current values of the two companies:

Capital One would be third-largest in purchase volume

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Capital One would be second-largest card issuer in the US

Capital One would lead in card amounts outstanding

Capital One issues mostly Visa and Mastercard as its credit cards. It would change an undetermined number of its cards to Discover but would retain Visa and Mastercard.

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CONTRIBUTING Gabe Hauari, Daniel de Visé and Jennifer Borresen

SOURCE Paste BN Network reporting and research; Nilson Reports; Associated Press