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Capital One Financial (NYSE:COF) is evaluating a possible purchase of Discover Financial Service (NYSE:DFS).
Capital One (COF) has been working with advisors to consider a potential acquisition of Discover (DFS), according to a Bloomberg report on Monday, citing people familiar with the matter.
According to the report, decisions on a potential transaction are ongoing and there is no certainty that they will lead to a purchase.
Discover Financial (DFS) has a market capitalization of approximately $28 billion, while Capital One (COF) is valued at $52 billion. Shares of Discover have gained 15% over the past year, while Capital One has jumped more than 40%.
Capital One (COF) and Discover (DFS) did not immediately respond to requests for comment from Bloomberg.
Capital One’s (COF) last major acquisition came more than a decade ago, when it bought 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 group head of Canadian Personal Banking at TD Bank (TD), as its next CEO and president effective March 6. The credit card company also announced in late November that it is considering selling its student loan portfolio.
Discover (DFS) will be present at the UBS Financial Services Conference on February 26.