Capital One and Discover Financial Shares Surge Following Trump Election

Shares of Capital One Financial Corporation (NYSE:COF) and Discover Financial Services (NYSE:DFS) experienced significant increases on Wednesday after Donald Trump was elected the 47th President of the United States. The new administration is perceived as more favorable towards the anticipated merger of the two credit card companies.

At 11 AM ET, Capital One shares rose by 13%, while Discover Financial shares increased by 17%.

In February 2024, Capital One agreed to acquire Discover Financial in an all-stock deal. As part of the agreement, Discover shareholders are set to receive 1.0192 Capital One shares for every Discover share they own.

The companies are aiming to finalize the transaction in early 2025, pending regulatory and shareholder approvals.

Analysts from BTIG provided insights on the merger following the announcement of Trump's victory, expressing a base case projection that the merger will receive approval by Q2 2025. BTIG remarked, "Trump's win and a Republican Congress is broadly positive for M&A."