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Discover Gobbles Up Diners Club

Firm moves into international credit card market with $165M deal

By Rob Quinn, Newser Staff

Posted Apr 8, 2008 3:10 AM CDT

(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.

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)

Credit card decals adorn a store window in the Hollywood section of Los Angeles, Wednesday, Sept. 5, 2007. (AP Photo/Nick Ut)

Discover is acquiring the world's oldest credit card brand, Diners Club International, from Citigroup in a $165 million deal. (AP Photo/Katsumi Kasahara)

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Discover Gobbles Up Diners Club

Firm moves into international credit card market with $165M deal

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More Newser Stories

Smarting, Credit Card Companies Cut Rewards

That airline ticket won't be so easily obtained in recession

Citi Goes Wild With Credit Card Offers

Have they sent you one yet?

Big Citi Hack Reveals Ugly Truth About Banks

Firms not investing enough on protecting customers, analysts say

Salvation Army Takes Plastic

Charity tests 'cashless kettle' program

Dow Down 41; Tech Rises, Banks Fall

September rally sees slight pullback

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Discover Gobbles Up Diners Club

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OTHER STORIES ON OUR RADAR

Citigroup • mergers and acquisitions • American Express • credit card • Discover • Diners Club

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Smarting, Credit Card Companies Cut Rewards

That airline ticket won't be so easily obtained in recession

Citi Goes Wild With Credit Card Offers

Have they sent you one yet?

Big Citi Hack Reveals Ugly Truth About Banks

Firms not investing enough on protecting customers, analysts say

Salvation Army Takes Plastic

Charity tests 'cashless kettle' program

Dow Down 41; Tech Rises, Banks Fall

September rally sees slight pullback

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?