Initially announced in February 2024, the merger raised concerns about its potential negative impact on consumers, particularly those without credit histories.

Despite Discover's lower acceptance rates compared to Visa and Mastercard, this merger could enhance Discover's negotiating power with these networks and broaden its acceptance footprint.

While shareholders have approved the merger, it still requires clearance from the Federal Reserve and the Office of the Comptroller of the Currency.

Although the Justice Department has cleared the merger, the Federal Reserve and the Office of the Comptroller of the Currency could still potentially block it, though such an outcome seems less likely.

The merger is anticipated to generate $2.7 billion in pretax synergies by 2027, which would significantly boost the earnings per share of the combined entity.

If completed, the merger would create the largest credit card issuer in the U.S. by loan volume, with the combined companies holding less than 20% of the nation's consumer credit card balances.

Reports indicate that the DOJ may not pursue legal action to block the deal, suggesting there are insufficient grounds for a successful court case.

The DOJ's initial concerns about the merger's impact on competition, particularly regarding subprime credit, have shifted to focus more on consumer impacts for those lacking credit history.

Following the merger announcement, both Capital One and Discover's stock prices experienced fluctuations, influenced by a broader market sell-off linked to economic concerns.

This merger positions Capital One to potentially challenge JPMorgan as the leading credit card issuer in the market, reshaping the competitive landscape.

Capital One has cleared a significant hurdle in its proposed $35 billion acquisition of Discover Financial Services, as the U.S. Justice Department has determined there are no substantial competition concerns.

The Justice Department's decision not to challenge the merger on antitrust grounds marks a pivotal moment for Capital One, which is now moving closer to regulatory approval.