Visa has confirmed that it is in talks to re-acquire Visa Europe in its quarterly update. The deal is likely to give Visa a strong boost to its global competition with MasterCard.
Although both companies share the same name, they haven’t been associated together for nearly 10 years. In 2007, the two firms split when Visa launched an initial public offering (IPO).
Rumours of a likely deal first surfaced in the middle of May when it was reported that negotiations were at “exceptionally” early stages.
It looks now that they have been elevated to much more serious talks. With Visa stating this in their quarterly update:
“Visa Inc. believes there is compelling logic for both Visa Inc. and Visa Europe to consummate a business combination and therefore regularly engages in such discussions and is currently in such discussions with Visa Europe. The Company is targeting to resolve these discussions by the end of October and will provide an update during the fourth quarter earnings call, if not sooner. There is no assurance, however, that any transaction will be ultimately agreed or implemented.”
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