09:18 AM EDT, 03/21/2024 (MT Newswires) -- Capital One Financial ( COF ) said in a regulatory application that its proposed merger with Discover Financial Services ( DFS ) will increase competition, Reuters reported Thursday, citing unnamed sources.

Capital One said competition in the credit card industry would not be hurt by the deal as the combined company would account for just 13% of credit card purchasing volume, the report said.

Capital One's main argument for the deal is its potential to create an entity that can compete viably with Visa (V) and Mastercard ( MA ) , according to the report.

The application was expected to be submitted late Wednesday, the report said.

Capital One's proposed acquisition of Discover in an all-stock deal valued at $35.3 billion was announced in February.

Neither Capital One nor Discover immediately responded to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 142.69, Change: +0.92, Percent Change: +0.65