Shareholders for Capital One and Discover Financial approved a proposed combination of the two companies in separate company meetings Tuesday.
The deal was overwhelmingly approved, with more than 99% of the shares of both companies voting to give the go-ahead to McLean, Virginia-based Capital One 's proposed $35-billion acquisition of Riverwoods, Illinois-based Discover, according to a Capital One news release Tuesday.
The results were expected. Shareholders generally vote to approve mergers by large margins.
The two companies are still awaiting a decision on the deal from the Federal Reserve Board of Governors and the Office of the Comptroller of the Currency, a Capital One spokesperson said in an email.
Spokespeople for the regulators did not immediately respond to a request for comment.
The Delaware State Bank Commissioner gave the acquisition a green light in December.
The deal is still expected to be finalized sometime early this year, the Capital One spokesperson said.
The date, though, has been the subject of speculation. Discover disclosed last week that it expects the deal to be completed by May 19. Previously, the company said it expected the deal would be done by Feb. 19.
The merger still faces some headwinds. Three lawsuits have been filed seeking to derail the deal on the grounds that it would be bad for consumers because the combined company would have less competition and could increase prices.
The New York Attorney General's office is investigating the merger to determine if it breaches the state’s antitrust law.
Consumer advocates have opposed to the merger, arguing the combined company would control around one-third of the market for subprime credit cards. As a result, they worry the deal could result in higher prices for low-income credit card users.
Capital One and Discover, however, have told regulators the deal won't raise prices for consumers because they will still face substantial competition.
Capital One proposed the acquisition of Discover on Feb. 18, 2024. The combined company would become the largest credit card issuer in the U.S. if the transaction is completed.
