Capital One said it will buy Discover Financial Services for more than $35bn, a deal that will marry two of the largest credit card companies in the US.

Under the terms of the all-stock deal, Discover shareholders are set to receive 1.0192 Capital One shares for each Discover share, representing a premium of about 27% based on Discover’s closing price on 16 February. After the deal closes, Capital One shareholders will hold roughly 60% of the combined company, with Discover shareholders owning the rest.