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.