I know what you’re about to say, “these are two totally different businesses!”
And yes, currently they are but with Capital One’s recent announcement of their intent to acquire Discover, I’m beginning to wonder about the long term implications of such a deal.
There are many reasons to not, but it is my view that regulators will approve the deal. Were this to happen, does anyone think that COF could slowly catch up to AXP?
Capital One has been inching into the luxury space with their Venture/Venture X cards and I can easily see them trying to expand into this market. I can also see them working to slowly integrate their cards off the Visa/Mastercard network and onto their own, similar to Amex.
Thoughts?
