Capital One Financial (NYSE:COF) is evaluating a possible purchase of Discover Financial Service (NYSE:DFS).
Capital One (COF) has been working with advisers to consider a potential acquisition of Discover (DFS), according to a Bloomberg report on Monday, which cited people familiar with the matter.
Deliberations on a potential transaction are ongoing and there’s no certainty they will lead to a purchase, according to the report.
Discover Financial (DFS) has a market cap of about $28 billion, while Capital One (COF) is valued at $52 billion. Shares of Discover gained 15% last year, while Capital One jumped over 40%.
Capital One (COF) and Discover (DFS) didn’t immediately respond to Bloomberg requests for comment.
Capital One’s (COF) last major acquisition was more than a decade ago when it purchased ING Group’s U.S. online bank in 2012 for more than $9 billion in cash and stock.
Discover (DFS) in December named Michael G. Rhodes, most recently the group head of Canadian Personal Banking at TD Bank (TD), as it next CEO and president effective on or before March 6. The credit card company in late November also announced that it’s considering selling its student loans portfolio.
Discover (DFS) is set to present at the UBS Financial Services Conference on Feb. 26.