Capital One ( COF) received approval from the Federal Reserve’s Board of Governors and the Office of the Comptroller of the Currency to acquire and merge with Discover Financial Services (DFS), the agencies announced Friday.

Capital One Financial Corporation and Discover Financial Services have announced that they received approval from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency for the proposed acquisition of Discover by Capital One.

Two regulators signed off on the $35 billion deal, which the banks say will create a competitor to Visa and Mastercard. But consumer advocates warn that the deal may raise costs.