Major law firms Wachtell, Lipton, Rosen & Katz and Sullivan & Cromwell recently aided Capital One Financial Corp. in the purchase of Discover Financial Services. The transaction, valued at $35 billion, is set to be the largest merger of the year, potentially marking a significant shift in a M&A landscape that was notably slow last year due to persistent economic uncertainty and challenges for investors.
Wachtell, Lipton, Rosen & Katz provided legal counsel to Capital One, while Sullivan & Cromwell were chosen as legal advisers for Discover.
Notably, this deal surpassed the $34 billion acquisition of software company Ansys Inc by Synopsys Inc. It is projected to close later in 2024 or perhaps early 2025, with completion dependant on regulatory and shareholder approval.
The past year proved challenging for M&A transactions, with a combination of expensive credit, investor uncertainty, and a general economic downturn making 2023 the slowest year for M&A deals in a decade.
In data collated by Bloomberg, Wachtell had a substantial presence in last year’s M&A transactions, ranking second in the M&A League Tables with a deal volume of $294.8 billion. On the other hand, Sullivan & Cromwell secured the eighth position, recording $194 billion in deals. Read more here.
Summary of the deal and the full article could be found here.