Moscow. October 30. The largest world payment system Visa Inc. close to agreement to purchase Visa Europe for $22 billion Deal will unite all international Visa transactions within a single Corporation and will become a record in the history of the American band, writes The Wall Street Journal, citing informed sources.
Negotiations with European banks owning Visa Europe, are carried out intermittently for several years, but in recent months they have intensified. WSJ sources claim that Visa will try to negotiate a deal until the end of October.
Analysts expect the official announcement on Monday, November 2, when Visa will publish quarterly reports.
After 2008 really big (over $10 billion) of transactions between the financial companies had very little, in the segment of payment systems did not exist, notes the WSJ.
At the moment the largest acquisition of a Visa is to buy a service provider for conducting secure payments in e-Commerce CyberSource for $2 billion in 2010.
Through the acquisition of Visa Europe is a California-based Visa may obtain access for its markets of Turkey and Poland, with high growth rates. In addition, it will improve its position in comparison with rival MasterCard, the total network which are smaller but which has its own division in Europe.
By estimations of analyst Citi of Donald Fandetti, the transaction can increase the company profits by 5%. Sanford Bernstein calculates that the profits Visa to 2018 will grow by 12%.
In 2015, analysts polled by Bloomberg, expected a net profit of Visa at $6,43 billion, or $2,62 per share is 12.8% more than last year.
Visa Europe has been carrying out activity since 2007, when preparing for an IPO, Visa adopted a new business structure. The companies share a common brand, but almost independent from each other, have their own settlement systems. American company listed on the new York stock exchange (NYSE), the European – controlled banks and operates as a licensee of Visa While Visa Europe is a minority shareholder Visa, which, in turn, receives from the European payment system of license payments (royalty).
In Visa Europe, based in the UK, is more than 3.7 thousand members (banks and payment services) from 36 countries, each of them has one share of the company. The Board of Directors is elected by the members and consists of 22 representatives from leading European banks. In 2014, the company received profit in the amount 219,8 million euros (+29%).
Today, Visa Inc. – global payment system providing access to the network of electronic payments to cardholders, retail and service enterprises, financial and government institutions in more than 200 countries. The company’s market capitalization exceeds $191 billion.