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May 17, 2008 1:32:29 AM CDT

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Discover Gobbles Up Diners Club  

Posted Apr 8, 08 3:10 AM CDT in World,  Business    Most Covered

(newser) – Discover Financial Services is moving into the global credit card market with its acquisition of Diners Club International from Citigroup, Bloomberg reports. The $165 million deal gives Discover a foothold in the 185 countries outside North America where Diners has a presence, which will add revenue at a time when Americans are struggling to pay their credit card bills. 

The deal is expected to boost Discover's pretax profits up to  $15 million a year. Diners Club—the world's oldest credit card brand—is popular among corporate jetsetters. Experts believe the acquisition could signal a move by Discover to challenge American Express dominance in the upper end of the market. The news lifted both Discover and Citigroup's share price.

Sources Bloomberg, Associated Press

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Discover Gobbles Up Diners Club
As Americans struggle to pay off credit card debt, Discover hopes to boost income from abroad with its acquisition of Diner Club International.   (KRT Photos)
Discover Gobbles Up Diners Club
Discover is acquiring the world's oldest credit card brand, Diners Club International, from Citigroup in a $165 million deal.   (AP Photo/Katsumi Kasahara)
Discover Gobbles Up Diners Club
Credit card decals adorn a store window in the Hollywood section of Los Angeles, Wednesday, Sept. 5, 2007.   (AP Photo/Nick Ut)
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Citigroup  • mergers and acquisitions  • credit card  • American Express  • Discover


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