After Capital One (COF) announced plans to acquire Discover Financial (DFS) for $35.3B in stock, BofA analyst Mihir Bhatia noted that the proposed deal would potentially create the largest U.S. credit card issuer with about 20% market share by combining the current number four and number six largest issuers by credit card loans outstanding. The firm, which thinks the proposed transaction offers “good strategic optionality” for Capital One, maintains a Buy rating on its shares.
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