© Reuters. The logo and ticker for Capital One are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 21, 2018. REUTERS/Brendan McDermid/File Photo
(Reuters) -Discover Financial Services or Capital One Financial (NYSE:) will pay a termination fee of $1.38 billion if the merger of the firms falls through under any circumstance, a regulatory filing showed on Thursday.
The all-stock deal announced on Monday would create the biggest U.S. credit card issuer, but it would also give Capital One access to Discover’s payment network, allowing it to rely less on payments giants Visa (NYSE:) and Mastercard (NYSE:).
Capital One, the third-largest issuer of Visa and MasterCard credit cards in the United States, said earlier in the week, shifting its card portfolio from those two payment giants to Discover’s network would help it generate $1.2 billion in 2027.
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